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:

Our Performance

A reference to how well an individual or group completes tasks or achieves goals in a given context.

Group Think

An event observed in group settings, where the preference for a harmonious or conforming atmosphere instigates choices that are lacking in logic or functionality.

Strong Leader

An individual who possesses assertiveness, decisiveness, and the ability to motivate and guide others toward achieving specific goals.

Consensus

A general agreement among the members of a given group or community.