You Are Considering the Following Two Mutually Exclusive Projects

question 66

Multiple Choice

You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value.
Based on the net present value method of analysis and given the information in the problem, you should:

• A) Accept both project A and project B.
• B) Accept project A and reject project B.
• C) Accept project B and reject project A.
• D) Reject both project A and project B.
• E) Accept whichever one you want as they represent equal opportunities.

---

Definitions:

Crowded Bus

A situation where a bus is filled to capacity or overcapacity with passengers, often resulting in uncomfortable conditions.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a variety of different topics.

Agoraphobia

A condition where individuals experience extreme fear of places or situations where escape might be difficult or help might not be available, often leading to avoidance of open or enclosed spaces.

Avoid Being Outside

The preference or tendency to stay indoors, sometimes associated with anxiety disorders such as agoraphobia.