6 stion Given the following information about projects A and B: Project A Project B -10,000 4,000 3,000 10,000 Time 0 Time 1 Time 2 Time 3 If alpha company uses IRR rule to choose projects, which of the projects (Project A or Project B) will rank highest? Select one: O a. Project A O b. Project B OO -10,000 5,000 4,000 3,000 c. Project A and Project B have the same ranking. d. Cannot calculate a payback period without a discount rate.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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stion
Given the following information about projects A and B:
Project A Project B
-10,000
-10,000
4,000
3,000
10,000
Time 0
Time 1
Time 2
Time 3
If alpha company uses IRR rule to choose projects, which of the projects (Project A or Project B)
will rank highest?
Select one:
O
O
O
5,000
4,000
3,000
a. Project A
b. Project B
c. Project A and Project B have the same ranking.
d. Cannot calculate a payback period without a discount rate.
Transcribed Image Text:of stion Given the following information about projects A and B: Project A Project B -10,000 -10,000 4,000 3,000 10,000 Time 0 Time 1 Time 2 Time 3 If alpha company uses IRR rule to choose projects, which of the projects (Project A or Project B) will rank highest? Select one: O O O 5,000 4,000 3,000 a. Project A b. Project B c. Project A and Project B have the same ranking. d. Cannot calculate a payback period without a discount rate.
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