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Author Question: A firm has two projects. Project A has an internal rate of return of 6. Project B's internal rate of ... (Read 212 times)

asan beg

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on: Jul 1, 2018
A firm has two projects. Project A has an internal rate of return of 6. Project B's internal rate of return is 11. If the firm's discount rate is 9.57,
 
  A) both projects have a negative net present value.
  B) only project A has a positive net present value.
  C) only project B has a positive net present value.
  D) both projects have a positive net present value.

Question 2

Assel grows mulberry trees. The lumber yard purchases cut trees from you. The trees grow 1 foot per year. Assuming a constant real price per foot for mulberry, at what interest rate would Assel be willing to sell a 10-foot tree today?
 
  A) 3
  B) 5
  C) 8
  D) 12
Microeconomics ¦ Perloff ¦ 8th Edition
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fauacakatahaias

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Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

D


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