An Investor Is Considering the Two Investments Shown Above

question 42

Multiple Choice

An investor is considering the two investments shown above.Her cost of capital is 9%.Which of the following statements about these investments is true?

• A)The investor should take investment A since it has a greater net present value (NP
• V).
• B)The investor should take investment A since it has a greater internal rate of return (IR
• R).
• C)The investor should take investment B since it has a greater net present value (NP
• V).
• D)The investor should take investment B since it has a greater internal rate of return (IR

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Definitions:

Correct Phylum

The appropriate classification category in the biological taxonomy system that groups together organisms sharing a common basic structure.

Spiders

Arachnids with eight legs, typically silk-spinning, and known for their predatory lifestyle.

Organism

Any living entity, from single-celled microbes to multicellular plants and animals, capable of reproduction and response to stimuli.

Blood Fluke

A type of parasitic worm, belonging to the schistosomiasis family, that infects the blood vessels of the intestinal tract or urinary tract in humans.