PDQ Inc Has a Weighted Cost of Capital of 14

question 11

Multiple Choice

PDQ Inc. has a weighted cost of capital of 14.6% and has an opportunity to invest in the following average risk projects: $\begin{array}{lllc}\text { Project } & \text { Cost } & \text { Annual Cost Flow } & \text { Project life } \\1 & \$ 10,000 & \$ 1,992.43 & 10 \text { years } \\2 & \$ 21,000 & \$ 4,526.84 & 8 \text { years } \\3 & \$ 18,500 & \$ 4,580.34 & 7 \text { years }\end{array}$ ? In which projects should PDQ invest? Assume no capital rationing.

• A) 1 and 2 only
• B) 2 and 3 only
• C) 1 and 3 only
• D) Cannot be determined from the information provided

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Definitions:

Emotional Cohesion

The bonding of group members through shared feelings, empathy, or emotional experiences that enhance a sense of unity or togetherness.

Goal-Focused Team Work

Collaborative effort where team members are unified in pursuing specific objectives, leading to more directed and effective outcomes.

Task Cohesion

Refers to the extent to which members of a group work together to achieve common goals.

Multilevel Nature

Referring to the complexity and layers involved in a process, situation, or system, which operates or exists on several different levels or stages.