Sexton Inc

question 75

Multiple Choice

Sexton Inc.is considering Projects S and L,whose cash flows are shown below.These projects are mutually exclusive,equally risky,and not repeatable.If the decision is made by choosing the project with the higher IRR,how much value will be forgone? Note that under certain conditions choosing projects on the basis of the IRR will not cause any value to be lost because the one with the higher IRR will also have the higher NPV,so no value will be lost if the IRR method is used.

• A) $188.91
• B) $145.46
• C) $228.58
• D) $226.70
• E) $230.47

Recognize the informational, decisional, and interpersonal roles of managers as identified by Henry Mintzberg.

Identify and understand key management functions.

Recognize and describe management skills and roles.

Distinguish between different research methods in organizational behavior.

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Definitions:

Lump Sum

A single payment made at a particular time, as opposed to a series of smaller payments or installments.

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Ordinary Annuity

A series of equal payments made at regular intervals, with interest compounded at the end of each period.