Use the Table for the Question(s)below

question 18

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects with cash flows in $:
-The maximum number of incremental IRRs that could exist for project B over project A is:

• A)1.
• B)2.
• C)0.
• D)3.

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Definitions:

Cash Flows

The complete sum of funds moving into and out of an enterprise, predominantly affecting its ability to cover short-term obligations.

Time Value

The principle that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.