A Firm Is Evaluating Three Capital Projects $\begin{array}{rr}\text { Project }&NPV\\1 & \$ 100 \\2 & \$ 0 \\3 & -\$ 100\end{array}$

question 132

Multiple Choice

A firm is evaluating three capital projects. The net present values for the projects are as follows: $\begin{array}{rr}\text { Project }&NPV\\1 & \$ 100 \\2 & \$ 0 \\3 & -\$ 100\end{array}$ The firm should___________ .

• A) accept Project 1 and reject Projects 2 and 3
• B) accept Projects 1 and 3 and reject Project 2
• C) accept Projects 1 and 2 and reject Project 3
• D) reject all projects

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Definitions:

Safety and Security

The state of being free from danger or threat and having measures in place to protect against harm.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated to achieve certain needs and that some needs take precedence over others, structured in a hierarchy from physiological needs to self-actualization.

Esteem

Refers to the respect, admiration, and recognition an individual receives from others, and also encompasses self-esteem, which is an individual's perception of their own worth.

Conditional

Relating to conditions or stipulations that affect the outcome of an event or action.