The Cash Flows for Four Projects Are Shown Below,along with the Cost

question 115

Multiple Choice

The cash flows for four projects are shown below,along with the cost of capital for these projects.If these projects are mutually exclusive,which one should be taken?

• A) Cost of Capital: 8%
• B) Cost of Capital: 7%
• C) Cost of Capital: 7.5%
• D) Cost of Capital: 5%
• E) Cost of Capital: 12%

---

Definitions:

Annual Subscription

A payment model where services or publications are provided for a one-year period in exchange for a fee.

Resale

The act of selling a product or service that one has purchased to a third party.

Extending Credit

The practice of allowing customers to purchase goods or services on the promise of future payment, based on trust in the customer's ability and willingness to pay.

Procedural Messages

Communications that provide instructions or directions on how to complete tasks or operate machinery or systems.