You Are Considering the Following Two Mutually Exclusive Projects

question 8

Multiple Choice

You are considering the following two mutually exclusive projects.Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project.Neither project has any salvage value. Should you accept or reject these projects based on the profitability index?

• A)accept Project A and reject Project B
• B)reject Project A and accept Project B
• C)accept both Projects A and B
• D)reject both Projects A and B
• E)You cannot make this decision based on the profitability index.

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Definitions:

Merit-Based System

A merit-based system is a method of employment or selection based on individuals' skills, abilities, and qualifications rather than factors such as nepotism or patronage.

Federal Employment

Jobs within the federal government, including positions in various agencies and departments.

Civil Service Reform Act

Legislation intended to improve and regulate the civil service of the United States by promoting merit-based appointment and ensuring job security for civil servants.

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