A Division Manager Is Choosing Between Two Mutually Exclusive Projects

question 122

Multiple Choice

A division manager is choosing between two mutually exclusive projects. The company requires any project to earn at least 12%. The manager believes that cash inflows from the project can be reinvested at the rate of 12%. Which project will the manager likely choose?

• A) Project B
• B) Project A
• C) both Projects A and B
• D) neither Project A nor B

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Definitions:

Retroactive Pessimism

The tendency to retrospectively view past events more negatively once an outcome is known, particularly if the outcome is undesirable.

Team Successes

these are accomplishments or achievements attained by a team as a result of its collective effort and cooperation.

Contract Acquisition

The process of obtaining a contract through various means such as negotiation, competitive bidding, or purchase in order to procure goods, services, or works.

Old-Timer Resistance

The reluctance or opposition often exhibited by long-standing members within an organization to changes or new ideas.