Consider Two Mutually Exclusive Projects a & B

question 9

Multiple Choice

Consider two mutually exclusive projects A & B.If you subtract the cash flows of opportunity B from the cash flows of opportunity A,then you should:

• A)take opportunity A if the regular IRR exceeds the cost of capital.
• B)take opportunity A if the incremental IRR exceeds the cost of capital.
• C)take opportunity B if the regular IRR exceeds the cost of capital.
• D)take opportunity B if the incremental IRR exceeds the cost of capital.

---

Definitions:

Corpus Callosum

The large band of neural fibers connecting the two brain hemispheres and carrying messages between them.

Brain

The organ located in the skull responsible for controlling the central nervous system, processing thoughts, emotions, and physical movements.

Brainstem

The central trunk of the brain, extending from the medulla to the diencephalon, responsible for controlling various involuntary functions such as breathing, heart rate, and sleep cycles.

Frontal Lobes

Portion of the cerebral cortex lying just behind the forehead; involved in speaking and muscle movements and in making plans and judgments.