The Following Information on Two Mutually Exclusive Projects Is Given

question 15

Essay

The following information on two mutually exclusive projects is given below: Which of the following statements is correct?
(a) Since the two projects have the same rate of return, they are indifferent.
(b) Project A would be a better choice, as the required investment is smaller with the same rate of return.
(c) Project B would be a better choice as long as the investor's MARR is less than 25%.
(d) Project B is a better choice regardless of the investor's MARR.

---

Definitions:

Common Ancestor

The most recent individual from which all organisms in a group are directly descended.

Directional Selection

A form of natural selection where one extreme phenotype is favored over others, causing the allele frequency to shift in one direction.

Extreme Phenotype

The manifestation of traits at the extreme endpoints of a genetic expression spectrum.

Inbreeding

The breeding of closely related individuals, which increases the risk of offspring inheriting genetic defects.