Lancaster Corp

question 3

Multiple Choice

Lancaster Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A has an IRR of 11%, while Project B's IRR is 14%. When the cost of capital is 8%, the projects have the same NPV. Given this information, which of the following statements is CORRECT?

• A) if the cost of capital is 9%, project a's npv will be higher than project b's.
• B) if the cost of capital is 6%, project b's npv will be higher than project a's.
• C) if the cost of capital is greater than 14%, project a's irr will exceed project b's.
• D) if the cost of capital is 9%, project b's npv will be higher than project a's.
• E) if the cost of capital is 13%, project a's npv will be higher than project b's.

---

Definitions:

Programming Bugs

Errors or flaws in a software program that can cause it to behave unexpectedly or lead to incorrect outcomes.

Input Signal

An electrical or physical quantity received by a system from its environment, which can be processed to produce an output.

Controller

A device or set of devices that manage, command, direct, or regulate the behavior of other devices or systems using control loops.

Scan Time

The time taken by a programmable logic controller (PLC) to read inputs, execute logic, and update outputs, crucial for the timing of control processes.