Project a Has an Initial Cost of $22,400 and Cash

question 61

Multiple Choice

Project A has an initial cost of $22,400 and cash flows of $7,100,$8,800,and $1,900 for Years 1 to 3,respectively.Project B has an initial cost of $37,200 and cash flows of $18,300,$17,900,and $2,700 for Years 1 to 3,respectively.What is the incremental IRR?

• A)15.67%
• B)13.54%
• C)15.91%
• D)23.38%
• E)27.31%

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Definitions:

Wilhelm Wundt

Wilhelm Wundt is known as the father of experimental psychology, establishing the first psychological laboratory in Leipzig, Germany, in 1879.

Scientific Psychology

The science-based practice of understanding mental functions, behaviors, and processes through empirical research and experimentation.

Laboratory

A controlled setting where scientists and researchers conduct experiments, tests, and research to gather data, test hypotheses, and develop new products or knowledge.

Cognitive Abilities

Sources of individual differences in performance on cognitive tasks, including factors such as intelligence, memory capacities, attentional focus, knowledge base, strategies, and processing speed.