A firm has two projects. Project A has an internal rate of return ...

[asan beg]

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

[fauacakatahaias]

Answer to Question 1

C

Answer to Question 2

D