A firm has to choose between projects X and Y. Project X's ...

[berenicecastro]

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]

Answer to Question 1

B

Answer to Question 2

D