« previous next »

Author Question: A firm has to choose between projects X and Y. Project X's internal rate of return is positive. If ... (Read 109 times)

berenicecastro

  • Hero Member
  • *****
  • Posts: 581
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
Buy Test-Bank


eliasc0401

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

The role of leptin in regulating appetite and metabolic rate. The role of leptin in regulating appetite and metabolic rate.
Range of Motion of the Shoulder Joint, Internal Rotation Range of Motion of the Shoulder Joint, Internal Rotation
Internal structures at the back of the eye. Internal structures at the back of the eye.
Christo, Over the River, Project for the Arkansas River, State of Colorado. Christo, Over the River, Project for the Arkansas River, State of Colorado.
When the exhaust is lean, the PCM applies a positive current into the pump cell. When the exhaust is lean, the PCM applies a positive current into the pump cell.
For each substrate below, choose which reaction type is favored. Place the letter of the ... For each substrate below, choose which reaction type is favored. Place the letter of the ...
Video: Eczema

For a complete list of videos, visit our video library