A Company Is Choosing Between Two Projects

question 21

Multiple Choice

A company is choosing between two projects.The larger project has an initial cost of $100,000,annual cash flows of $30,000 for 5 years,and an IRR of 15.24%.The smaller project has an initial cost of $50,000,annual cash flows of $16,000 for 5 years,and an IRR of 16.63%.The projects are equally risky.Which of the following statements is correct?

• A)Since the smaller project has the higher IRR, the two projects' NPV profiles cannot cross, and the smaller project's NPV will be higher at all positive values of WACC.
• B)Since the smaller project has the higher IRR, the two projects' NPV profiles will cross, and the larger project will look better based on the NPV at all positive values of WACC.
• C)Since the smaller project has the higher IRR but the larger project has the higher NPV at a zero discount rate, the two projects' NPV profiles will cross, and the larger project will have the higher NPV if the WACC is less than the crossover rate.
• D)Since the smaller project has the higher IRR and the larger NPV at a zero discount rate, the two projects' NPV profiles will cross, and the larger smaller project will look better if the WACC is less than the crossover rate.

Grasp the concept of niche differentiation and its role in species coexistence.

Identify the types of competition and their ecological consequences.

Understand the role of herbivory in ecosystem dynamics.

Recognize the importance of parasitism and its effects on host populations.

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Definitions:

Blood Clotting

The process by which blood changes from a liquid to a gel, forming a clot to stop bleeding.

Nerve Impulse

An electrical signal that travels along the nerve fiber, enabling communication between neurons or between neurons and muscles.

Intracellular Enzymes

Enzymes that operate within cells, facilitating biochemical reactions necessary for cellular metabolism and processes.

Vitamin D

Fat-soluble vitamin produced from precursor molecules in skin exposed to ultraviolet light; increases calcium and phosphate uptake from the intestines.