Noe Drilling Inc

question 10

Multiple Choice

Noe Drilling Inc.is considering Projects S and L,whose cash flows are shown below.These projects are mutually exclusive,equally risky,and not repeatable.The CEO believes the IRR is the best selection criterion,while the CFO advocates the MIRR.If the decision is made by choosing the project with the higher IRR rather than the one with the higher MIRR,how much,if any,value will be forgone,i.e. ,what's the NPV of the chosen project versus the maximum possible NPV? Note that (1) "true value" is measured by NPV,and (2) under some conditions the choice of IRR vs.MIRR will have no effect on the value lost. ​

• A) $92.69
• B) $62.57
• C) $0.00
• D) $95.01
• E) $78.79

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Definitions:

Responsiveness

The quality of reacting quickly and positively to changes or stimuli.

Still-face Technique

A research experiment where a caregiver maintains a neutral, unresponsive face towards an infant, observing the child's response to the lack of social engagement.

Emotional Reaction

An individual's immediate and instinctive response to a situation or event, often influenced by personal experiences and temperament.

Facial Expressions

The movements and positions of the face that convey emotional states or reactions to stimuli.