Author Question: A firm has to choose between projects X and Y. Project X's internal rate of return is positive. If ... (Read 106 times)

berenicecastro

  • Hero Member
  • *****
  • Posts: 581
A firm has to choose between projects X and Y. Project X's internal rate of return is positive. If the cash flow of project Y is discounted at project X's internal rate of return, this firm will
 
  A) choose project X if the net present value of project Y is positive.
  B) choose project X if the net present value of project Y is negative.
  C) choose project Y if the net present value of project Y is positive.
  D) choose project X regardless of the net present value of project Y.

Question 2

If a firm uses introductory pricing, it is likely ________ short run profit and ________ long run profit.
 
  A) minimizing; maximizing
  B) maximizing; maximizing
  C) maximizing; reducing
  D) reducing; maximizing


eliasc0401

  • Sr. Member
  • ****
  • Posts: 338
Answer to Question 1

B

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

For a complete list of videos, visit our video library