Quattro, Inc

question 89

Multiple Choice

Quattro, Inc.has the following mutually exclusive projects available.The company has historically used a four-year cutoff for projects.The required return is 11 percent. The payback for Project A is ____ while the payback for Project B is ____.The NPV for Project A is _____ while the NPV for Project B is ____.Which project, if any, should the company accept?

• A)2.782 years; 3.25 years; $ 7.090.12; $12,011.48; accept both Projects
• B)3.92 years; 3.79 years; -$6,197.89; $14,693.39; accept Project B only
• C)3.60 years; 3.95 years; -$6,197.89; -$14,693.39; reject both projects
• D)3.96 years; 3.42 years; $17,780.85; -$1,211.48; accept Project A only
• E)4.06 years; 3.79 years; $211.60; -$7,945.93; accept Project A only

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Definitions:

Organizational Change

The process by which companies or organizations modify major components or processes of their operation, including structures, strategies, routines, or technology.

Organization Development

A field of research and practice focused on improving organizational effectiveness and employee well-being through planned change.

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An intervention designed to improve the effectiveness of a work group.

Survey Feedback

A widely used intervention method whereby employee attitudes are solicited using a questionnaire.