Yonan Inc Is Considering Projects S and L, Whose Cash Flows

question 7

Multiple Choice

Yonan Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the shorter payback, some value may be forgone. How much value will be lost in this instance? Note that under some conditions choosing projects on the basis of the shorter payback will not cause value to be lost.

• A) $55.16
• B) $66.42
• C) $78.79
• D) $93.16

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Definitions:

Adrenal Glands

A pair of endocrine glands that sit just above the kidneys and secrete hormones (epinephrine and norepinephrine) that help arouse the body in times of stress

Testosterone

The most important male sex hormone. Both males and females have it, but the additional testosterone in males stimulates the growth of the male sex organs during the fetal period, and the development of the male sex characteristics during puberty.

Y Chromosomes

A sex chromosome found only in males, which contains genes that are critical for male sex determination and development.

Gender Schemas

Cognitive structures that dictate how individuals understand gender roles and expectations in society.