Author Question: A firm has to choose between projects X and Y. Project X's internal rate of return is positive. If ... (Read 86 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?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

For a complete list of videos, visit our video library