Blue Water Systems is analyzing a project with the following cash flows. Should this project be accepted

You are considering two independent projects with the following cash flows. The required return for both projects is 16 percent. Given this information, which one of the following statements is correct?        A.  You should accept Project A and reject Project B based on their respective NPVs. B.  You should accept Project B and reject Project A based on their respective NPVs. C.  You should accept Project A and reject Project B based on their respective IRRs. D.  You should accept Project B and reject Project A based on their respective IRRs. E.  You should accept both projects based on both the NPV and IRR decision rules.

65.

You are considering an investment with the following cash flows. If the required rate of return for this investment is 15.5 percent, should you accept the investment based solely on the internal rate of return rule? Why or why not?        A.  Yes; The IRR exceeds the required return. B.  Yes; The IRR is less than the required return. C.  No; The IRR is less than the required return. D.  No; The IRR exceeds the required return. E.  You cannot apply the IRR rule in this case. Since the cash flow direction changes twice, there are two IRRs. Thus, the IRR rule cannot be used to determine acceptance or rejection.

66.

Blue Water Systems is analyzing a project with the following cash flows. Should this project be accepted based on the discounting approach to the modified internal rate of return if the discount rate is 14 percent? Why or why not?        A.  Yes; The MIRR is 13.48 percent. B.  Yes; The MIRR is 17.85 percent. C.  Yes; The MIRR is 21.23 percent. D.  No; The MIRR is 5.73 percent. E.  No; The MIRR is 17.85 percent.