Use the Table for the Question(s)below

question 10

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects with cash flows in $:
-The internal rate of return (IRR) for project B is closest to:

• A)21.6%.
• B)23.3%.
• C)42.9%.
• D)7.7%.

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Definitions:

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, representing non-physical assets like brand reputation and customer loyalty.

Book Value Decrease

A reduction in the book value of an asset, often due to depreciation, impairment, or disposal.

Inventory Of Minerals

An itemized catalog of mineral resources that a company has in its possession, which can include raw materials, work-in-progress, and finished goods.

Net Income

The net income of a business following the deduction of all taxes, expenses, and costs from its total revenue.