You Have a Choice Between Two Projects, Project1 Pays $12,000

question 50

Multiple Choice

You have a choice between two projects, Project1 pays $12,000 back at the end of 1 period on an investment of $10,000. Project 2 pays back $6,500 at the end of 1 period on an investment of $5,000. Which project should be chosen and what is the problem that you must be concerned with in this choice?

• A) Project 1; discount rate.
• B) Project 2; discount rate.
• C) Project 1; project scales.
• D) Project 2; project scales.
• E) Project 1, cash flow timings.

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Definitions:

Economic Issues

Matters concerning the production, distribution, and consumption of goods and services, and the management of money and resources.

Representation Activities

Actions undertaken by individuals or groups to act on behalf of others, typically in the context of labor unions representing their members.

Multiple Occupations

Having more than one job or role within a workplace, or across different industries or sectors.

Multiple Workplaces

Refers to employment arrangements where an individual or a group works in more than one location for a single employer.