The Square Box Is Considering Two Projects,both of Which Have

question 71

Multiple Choice

The Square Box is considering two projects,both of which have an initial cost of $35,000 and total cash inflows of $50,000.The cash inflows of project A are $5,000,$10,000,$15,000,and $20,000 over the next four years,respectively.The cash inflows for project B are $20,000,$15,000,$10,000,and $5,000 over the next four years,respectively.Which one of the following statements is correct if The Square Box requires a 13 percent rate of return and has a required discounted payback period of 3.5 years?

• A)Both projects should be accepted.
• B)Both projects should be rejected.
• C)Project A should be accepted and project B should be rejected.
• D)Project A should be rejected and project B should be accepted.
• E)You should be indifferent to accepting either or both projects.

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Definitions:

Heterozygous

Having two different alleles for a particular gene, one inherited from each parent.

Karyotype

The chromosomal composition of an individual.

XYY

A chromosomal pattern that occurs when a male has an extra Y chromosome (47,XYY), often associated with a range of physiological and developmental features.

Phenotypically

Relating to the observable characteristics of an organism that result from both genetic makeup and environmental influences.