Project a Costs $47,800 with Cash Inflows of $34,200 in Year

question 61

Multiple Choice

Project A costs $47,800 with cash inflows of $34,200 in Year 1 and $28,700 in Year 2. Project B costs $63,200 with cash inflows of $21,900 in Year 1 and $59,200 in Year 2. These projects are independent and have an assigned discount rate of 15 percent. Based on the profitability index, what is your recommendation concerning these projects?

• A) Accept both projects
• B) Reject both projects
• C) Accept Project A and reject Project B
• D) Accept Project B and reject Project A 
• E) Accept either, but not both projects 

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Definitions:

Dharma

The moral responsibilities and guidelines that define an entire way of life.

Patriotism

A feeling of pride, love, and devotion to one's country and its values, sometimes leading to a sense of duty to defend its interests.

Form Of Religion

Various expressions and practices of religious beliefs, varying widely among different cultures and traditions.

Intrinsically Sacred

A concept describing something that is considered holy, divine, or of utmost spiritual significance inherently, without need for external validation.