Which of the Following Statements Is Correct

question 45

Multiple Choice

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

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Definitions:

Marginal Utility Data

Information that measures the additional satisfaction or benefit that is gained from consuming one more unit of a good or service.

Utility Maximization

The process of choosing the most satisfying option from a set of alternatives based on preferences.

Utility Maximization

The economic principle that consumers attempt to get the greatest satisfaction possible from their purchases and consumption, given their limited resources.

Rational Consumer

An individual who seeks to maximize their utility or satisfaction from consumption under their budget constraints.