The Columbus Company Has Four Mutually Exclusive Projects with the Following

question 92

Multiple Choice

The Columbus Company has four mutually exclusive projects with the following information: $$\begin{array} { l r r r r } & \text { Project 1 } & \text { Project 2 } & \text { Project 3 } & \text { Project 4 } \\\text { NPV } & \$ ( 12,000 ) & \$ 80,000 & \$ 60,000 & \$ 20,000 \\\text { IRR } & 7 \% & 10 \% & 12 \% & 9 \%\end{array}$$ Which project is preferred?

• A) Project 1
• B) Project 2
• C) Project 3
• D) Project 4

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Definitions:

Galvanometer

A meter movement requiring microamperes to cause a full-scale deflection. Many galvanometers have a zero center, which permits them to measure both positive and negative values.

Digital Ammeter

An instrument used to measure electric current flow in a circuit, displaying the value digitally for accuracy and ease of reading.

Voltmeter

An instrument used for measuring the electrical potential difference between two points in an electric circuit.

Clamp-on Ammeter

A measuring instrument that can measure the current flow in a conductor without requiring any physical contact or disconnecting the circuit.