The Cash Flows for Four Projects Are Shown Below, Along

question 25

Multiple Choice

The cash flows for four projects are shown below, along with the cost of capital for these projects. If these projects are mutually exclusive, which one should be taken?

• A)Year: 0 1 2 3 4 5 Cash flow: -$5000 $2000 $2000 $2000 $2000 $2000
• Cost of Capital: 6.0%
• B)Year: 0 1 2 3 4 5 Cash flow: -$6000 $2500 $2500 $2500 $2500 2,500
• Cost of Capital: 7.5%
• C)Year: 0 1 2 3 4 5 Cash flow: -$7000 $3000 $3000 $3000 $3000 $3000
• Cost of Capital: 7.5%
• D)Year: 0 1 2 3 4 5 Cash flow: -$8000 $3200 $3200 $3200 $3200 $3200
• Cost of Capital: 9.2%

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Definitions:

Gas Exchange

The process by which oxygen is taken in and carbon dioxide is expelled out of the body, primarily occurring in the lungs.

Tidal Volume

The amount of air that is inhaled or exhaled during a normal breath.

Carbon Monoxide Detector

A device that detects the presence of the carbon monoxide gas in order to prevent carbon monoxide poisoning.

Hemoglobin

A protein in red blood cells responsible for transporting oxygen throughout the body.