Refer to the Data Provided in Table 11 -Refer to Table 11

question 186

Multiple Choice

Refer to the data provided in Table 11.3 below to answer the following question(s) .
Table 11.3
Project Total Investment Expected Rate of Return
(dollars) (percentage)
$$\begin{array} { l l r } \text { New computer for sales staff } & \$ 250,000 & 11 \\\text { Remodel for distribution center } & \$ 200,000 & 9 \\\text { On-site day care center } & \$ 100,000 & 5 \\\text { Employee fitness center } & \$ 50,000 & 4\end{array}$$
-Refer to Table 11.3. If the interest rate is 10%, Blackstar Drone Manufacturing should

• A) fund only the purchase of new computers for its sales staff.
• B) fund all of the projects except for the purchase of new computers for its sales staff.
• C) fund all of the projects.
• D) not fund any of the projects.

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Definitions:

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving judgment, problem-solving, and considering the potential outcomes.

Pros

The advantages or positive aspects of a situation or decision.

Cons

The arguments, reasons, or factors opposing an idea, decision, or action; the drawbacks or disadvantages.

Gains

Benefits or profits accrued from investments, efforts, or other activities.