When Choosing Between Projects,an Alternative to Comparing Their IRRs Is

question 21

Multiple Choice

When choosing between projects,an alternative to comparing their IRRs is:

• A)to compute the incremental IRR,which tells us the discount rate at which it becomes profitable to switch from one project to the other.
• B)to compute the incremental payback period,which tells us the number of years during which it becomes profitable to switch from one project to the other.
• C)to compute the incremental NPV,which tells us the discount rate at which it becomes profitable to switch from one project to the other.
• D)There is no alternative selection criterion to comparing IRRs.

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Definitions:

Guanine

One of the four main nucleobases found in the nucleic acids DNA and RNA, which pairs with cytosine.

Adenine

A nitrogenous purine base that is a component of nucleic acids and ATP.

Cytosine

A nitrogenous pyrimidine base that is a component of nucleic acids.

Thymine

A pyrimidine base found in DNA, paired with adenine in the DNA double helix.