Use the Table for the Question(s)below

question 65

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects with cash flows in $:
-Assume that projects Alpha and Beta are mutually exclusive.Which of the following statements is true regarding the investment decision tools' suitability for deciding between projects Alpha & Beta?

• A)The incremental IRR should not be used since the projects have different lives.
• B)The incremental IRR should not be used since the projects have different discount rates.
• C)The incremental IRR should not be used since the projects have different cash flow patterns.
• D)Both the NPV and incremental IRR approaches are appropriate to solve this problem.

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Definitions:

Social Responsibility

The obligation of an organization or individual to act for the benefit of society at large, balancing profit-making activities with activities that benefit the community.

Defensive Strategy

A business approach aimed at protecting an organization's current market share, products, and services from competitors.

Discretionary Responsibilities

Voluntary activities and behaviors that go beyond the basic requirements of the job, intended to benefit the organization or its stakeholders.

Social Responsibility

An ethical framework suggesting that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large.