Use the Table for the Question(s)below

question 73

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects with cash flows in $:
-Which of the following statements is correct?

• A)You should accept project A since its IRR > 15%.
• B)You should reject project B since its NPV > 0.
• C)You should accept project A since its NPV < 0.
• D)You should accept project B since its IRR < 15%.

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Definitions:

Quantity Variances

The difference between actual and standard quantities used in production, affecting cost management and budgeting.

Rate Variance

The difference between the actual rate paid for something and the standard or expected rate.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing of products or delivery of services.

Spoilage

Materials or products that are damaged or unsuitable for sale or use and are written off as a loss.