Projects S and L Are Equally Risky,mutually Exclusive,and Have Normal

question 39

Multiple Choice

Projects S and L are equally risky,mutually exclusive,and have normal cash flows.Project S has an IRR of 15%,while Project L's IRR is 12%.The two projects have the same NPV when the WACC is 7%.Which of the following statements is CORRECT?

• A) If the WACC is 10%,both projects will have positive NPVs.
• B) If the WACC is 6%,Project S will have the higher NPV.
• C) If the WACC is 13%,Project S will have the lower NPV.
• D) If the WACC is 10%,both projects will have a negative NPV.
• E) Project S's NPV is more sensitive to changes in WACC than Project L's.

Understand the motives behind aggressive behavior in unpopular children, including the desire for any form of attention.

Understand the framework for ethical decision making in business contexts.

Distinguish between business ethics and marketing ethics.

Recognize the role of corporate social responsibility (CSR) in the marketing and operation of controversial or polluting industries.

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Definitions:

Business Objectives

The specific goals or aims that an organization seeks to achieve, guiding its operational and strategic direction.

Observable

Capable of being seen or noticed through direct observation.

Motivating Employees

The process of encouraging and inspiring workers to perform their tasks efficiently and effectively.

Expectancy Model

A theory that explains the process individuals use to evaluate the likelihood that their efforts will lead to the desired outcome based on their expectations and the attractiveness of that outcome.