Use the Following Statements to Answer This Question

question 138

Multiple Choice

Use the following statements to answer this question:
I.The EANPV is effective in choosing between projects that have different life spans.
II.The IRR will lead to the same conclusion as EANPV if the two projects are not mutually exclusive and the cash flows are conventional.

• A)I and II are correct.
• B)I and II are incorrect.
• C)I is correct and II is incorrect.
• D)I is incorrect and II is correct.

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Definitions:

Foreign Corrupt Practices Act

A U.S. law that prohibits companies and their individuals from bribing foreign officials to gain a business advantage.

Bribes

Payments or gifts given with the intention of influencing the actions of an individual in a position of power or authority.

Foreign Government Officials

Representatives or employees of a government from a country other than one's own, including diplomats, ministers, and other officials.

Legal System

The comprehensive framework of rules, regulations, practices, and institutions through which laws are created, interpreted, and enforced within a country or jurisdiction.