A Company Is Considering Two Mutually Exclusive Projects,A and B)Project

question 91

Multiple Choice

A company is considering two mutually exclusive projects,A and B) Project A requires an initial investment of $100, followed by cash flows of $95, $20, and $5.Project B requires an initial investment of $100, followed by cash flows of $0, $20, and $130.What is the IRR of the project that is best for the company's shareholders? The firm's cost of capital is 10 percent.

• A)15.24 percent
• B)15.96 percent
• C)15.42 percent

---

Definitions:

Spam

Unsolicited digital messages sent in bulk, typically via email, often containing advertising or harmful content.

Unix/Linux Shell

A command-line interpreter or shell that provides a user interface for Unix/Linux operating systems to access and execute commands.

.Sh

A file extension for shell script files, which are used to execute commands in Linux and Unix environments.

PowerShell

A task-based command-line shell and scripting language built on .NET, designed especially for system administration.