Matt Is Analyzing Two Mutually Exclusive Projects of Similar Size

question 176

Multiple Choice

Matt is analyzing two mutually exclusive projects of similar size and has prepared the following data. Both projects have 5 year lives. Matt has been asked for his best recommendation given this information. His recommendation
Should be to accept:

• A) Project B because it has the shortest payback period.
• B) Both projects as they both have positive net present values.
• C) Project A and reject project B based on their net present values.
• D) Project B and reject project A based on their average accounting returns.
• E) Project B and reject project A based on both the payback period and the average accounting return.

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Definitions:

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating significantly from those accepted by the individual's culture.

Intelligence

The ability to learn, understand, and apply knowledge, solve problems, and adapt to new situations.

Social Interactions

Exchanges between two or more individuals, which can influence their behavior and mental states.

Ideas Of Reference

The false belief that unrelated events, objects, or other people have a direct personal significance and relevance.