Project a Has NPV of $45 Million While Project B

question 4

Multiple Choice

Project A has NPV of $45 million while project B has NPV of $54.5 million.If the cost of project A is $33 million and the cost of project B is $22 million,which project should be chosen if only one can be chosen?

• A)Project A.
• B)Project B.
• C)Neither.
• D)Both.
• E)Answer varies,depending on inflation.

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Definitions:

NGOs

Non-Governmental Organizations (NGOs) are independent groups operating globally or locally without government control, working in various fields like environmental protection, human rights, and development.

International and Global Organizations

Entities that operate across multiple countries with the aim of fostering international cooperation, improving economic and social conditions, and resolving global issues.

Distribution of Wealth

The manner in which wealth, defined by assets and income, is allocated among individuals or groups within a society.

Integrative Principle

A concept that emphasizes the combination of various ideas, systems, or theories to form a comprehensive understanding or approach.