Nast IncIs Considering Projects S and L,whose Cash Flows Are Shown

question 35

Multiple Choice

Nast 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 MIRR rather than the one with the higher NPV,how much value will be forgone? Note that under some conditions choosing projects on the basis of the MIRR will cause $0.00 value to be lost.

• A) $34.24
• B) $26.78
• C) $33.90
• D) $27.80
• E) $25.77

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Local Service

A service provided within a limited geographic area, typically catering to the needs of a community or specific locality.

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Restraint exercised over one’s own impulses, desires, or emotions; temperance.

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Choosing to act without regard to one's internal sense of right and wrong.

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