Refer to the Following:
the Following Table Shows the Expected

question 49

Multiple Choice

Refer to the following:
The following table shows the expected value and variance for 5 projects a firm can undertake.
$$\begin{array} { c c c } \text { Praiecl } & \text { Expeted Value } & \text { Variance } \\\hline A & \$ 100 & \$ 124 \\B & \$ 220 & \$ 110 \\C & \$ 100 & \$ 138 \\D & \$ 180 & \$ 138 \\E & \$ 200 & \$ 124\end{array}$$
-Which of the following is (are) correct if the mean-variance rule is used for the decision?

• A) Project C is preferable to A.
• B) Project E is preferable to B.
• C) Project D is preferable to C.
• D) all of the above
• E) none of the above

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Definitions:

LIFO Method

An accounting method that records the last items added to inventory as the first items sold.

Ending Inventory

Refers to the value of goods available for sale at the end of an accounting period.

Tennis Rackets

Sporting equipment consisting of a handled frame with an open hoop across which a network of strings or catgut is stretched tightly, used to strike a tennis ball.

Inventory Turnover

A measure of how many times inventory is sold or used in a time period such as a year.