Use the Table for the Question(s)below

question 67

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:

-Which of the following statements is correct?

• A)You should invest in project Beta since NPV_Beta > 0.
• B)You should invest in project Alpha since IRR_Alpha > IRR_Beta.
• C)Your should invest in project Alpha since NPV_Alpha < 0.
• D)You should invest in project Beta since IRR_Beta > 0.

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Definitions:

Free Cash Flow

The sum of money a business produces after deducting the capital expenses required to sustain or grow its assets.

Value Of Equity

The total value of a company's shares of stock held by all its shareholders, including share capital plus retained earnings.

Notes Payable

Short-term or long-term liabilities recorded when a company borrows money, often in the form of a promissory note.

Common Stock

Common stock represents units of ownership in a corporation, granting shareholders voting rights and potentially dividends, but also placing them last in priority for company assets upon liquidation.