Two Projects Being Considered Are Mutually Exclusive and Have the Following

question 85

Multiple Choice

Two projects being considered are mutually exclusive and have the following projected cash flows: If the required rate of return on these projects is 10 percent, which would be chosen and why?

• A) Project B because of higher NPV.
• B) Project B because of higher IRR.
• C) Project A because of higher NPV.
• D) Project A because of higher IRR.
• E) Neither, because both have IRRs less than the required return.

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Definitions:

Fevers

A rise in the body's temperature above the normal range, often indicating infection or illness.

Primary

Occurring first in time, development, or sequence; earliest.

Hypertension

A condition characterized by persistently high blood pressure in the arteries, which can increase the risk of heart disease, stroke, and other health issues.

Malignant

A cancerous growth; tumor.