Use the Table for the Question(s) Below

question 56

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:

-Assume that projects A and B are mutually exclusive.What is the correct investment decision and the best rationale for that decision?

• A) Invest in project A since NPV_B < NPV_A
• B) Invest in project B since IRR_B > IRR_A
• C) Invest in project B since NPV_B > NPV_A
• D) Invest in project A since NPV_A > 0

---

Definitions:

Excess Supply

A market condition where the quantity of a good or service offered for sale by producers exceeds the quantity demanded by consumers, typically leading to a drop in prices.

Excess Demand

A market condition where the quantity demanded of a good or service exceeds the quantity supplied at a given price, leading to shortages.

Good Increases

Refers to a situation where the quantity or quality of goods available in a market or economy grows.

Excess Demand

Occurs when the quantity demanded of a product significantly exceeds its quantity supplied, often leading to a shortage.