If the IRR Is 10% APR for Two Projects, Then

question 90

Multiple Choice

If the IRR is 10% APR for two projects, then ____.

• A)the projects have equally risky cash flows
• B)the projects have the same discount rate
• C)the NPVs of the projects are the same
• D)the expected cash flows of the projects may be the same despite having different values for variance

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Definitions:

Accrued Liability

A liability that has been incurred, often for expenses, that has not yet been paid or recorded at the end of the accounting period.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity of the business.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.

Liquidity

A company's ability to meet its short-term obligations using its most liquid assets, indicating financial health.