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:

Direct Tax

A tax levied directly on an individual's or organization's income or wealth, such as income tax or property tax.

Indirect Tax

A tax collected by an intermediary from the person who bears the ultimate economic burden of the tax; examples include sales taxes and value-added taxes.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits for retirees, disabled individuals, and survivors of deceased workers.

Personal Income Tax

A tax levied on individuals' earnings, including wages, salaries, and investment income, often progressive in nature.