You Have a Choice Between Two Mutually Exclusive Investments

question 101

Multiple Choice

You have a choice between two mutually exclusive investments. If you require a 14% return, which investment should you choose?

• A) Project B, because it has a smaller initial investment.
• B) Project A, because it has a higher NPV.
• C) Either one, because they have the same profitability indexes.
• D) Project B, because it has the higher internal rate of return.
• E) Project B, because it pays back faster.

---

Definitions:

Average Observed Time

The mean time noted for a task in a work measurement study, calculated by observing and recording the time taken to complete the task over several cycles.

Performance Rating

An assessment of an individual's or organization's performance, often compared against predetermined standards or objectives.

Time Standard

A benchmark or reference point for the expected time required to complete a task, often used in manufacturing and productivity analysis.

Work Sampling

A statistical technique used to estimate the proportion of time spent by workers on various tasks, through random observations over a period.