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Author Question: A firm has to choose between projects X and Y. Project X's internal rate of return is positive. If ... (Read 42 times)

berenicecastro

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on: Jul 1, 2018
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
Microeconomics ¦ Perloff ¦ 8th Edition
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eliasc0401

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

B

Answer to Question 2

D


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