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NEW QUESTION: 1
Your company is choosing between the following non-repeatable, equally risky, mutually exclusive projects with the cash flows shown below. Your cost of capital is 10 percent. How much value will your firm sacrifice if it selects the project with the higher IRR? Project S:
0123
-1,000500500500
Project L:
012345
-2,000668.76668.76668.76668.76668.76
A. $481.15
B. $291.70
C. $535.13
D. $332.50
E. $243.43
Answer: B
Explanation:
Explanation/Reference:
Explanation:
NPV(S) = $243.43; IRR(S) = 23.38%.
NPV(L) = $535.13; IRR(L) = 20.00%.
Value sacrificed: $535.13 - $243.43 = $291.70.
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Answer: C
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The variant principle is used in SAP S/4HANA to assign particular properties to one or more objects. How many steps does the variant principle have? Choose the correct answer.
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B. 1
C. 2
D. 3
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