The Canadian Division Manager Is Choosing Between Two Mutually Exclusive

question 63

Multiple Choice

The Canadian Division manager is choosing between two mutually exclusive projects. The company requires any project to earn at least 13%.The manager believes that cash inflows from the project can be reinvested at the rate of 13%.Which project will the manager likely choose?
$\begin{array}{lrr}&\text { Project } 123&\text { Project } 456\\\text { Net present value } & \$ 235,000 & \$ 210,000 \\\text { Internal rate of return } & 14 \% & 16 \%\end{array}$

• A)Project 456
• B)Project 123
• C)both Projects 123 and 456
• D)neither Project 123 nor 456

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Definitions:

Simp

A term colloquially used to describe someone who demonstrates excessive sympathy or attention towards another person, often with little regard for reciprocation.

Assumption

A statement or idea accepted as true without proof, often used as a starting point for reasoning and arguments.

Add

To unite or join one thing to another, typically to increase the quantity or improve the whole.

UI

User Interface, which refers to the means by which a user interacts with a computer, software application, or digital device.