The Projected Cash Flows for Two Mutually Exclusive Projects Are

question 35

Multiple Choice

The projected cash flows for two mutually exclusive projects are as follows: $\begin{array}{lll}\text { Year } & \text { Project } A & \text { ProjectB } \\\hline 0 & (\$ 150,000) & (\$ 150,000) \\1 & 0 & 50,000 \\2 & 0 & 50,000 \\3 & 0 & 50,000 \\4 & 0 & 50,000 \\5 & 250,000 & 50,000\end{array}$ If the cost of capital is 10%, the decidedly more favorable project is:

• A) project B with an NPV of $39,539 and an IRR of 19.9%.
• B) project A with an NPV of $5,230 and an IRR of 10.8%.
• C) project A with an NPV of $39,539 and an IRR of 10.8%.
• D) project B with an NPV of $5,230 and an IRR of 19.9%.

---

Definitions:

Crisis

To Erikson, the turning point faced at each developmental stage.

Cognitive Needs

Innate needs to know and to understand.

Innate Needs

Fundamental, inborn requirements essential for basic functioning and well-being.

Cognitive Needs

Basic desires and psychological requirements that drive an individual's thinking, problem-solving, and intellectual growth.