Which Mutually Exclusive Project Would You Select, If Both Are

question 76

Multiple Choice

Which mutually exclusive project would you select, if both are priced at $1,000 and your discount rate is 15 percent; Project A with three annual cash flows of $1,000, or Project B, with three years of zero cash flow followed by three years of $1,500 annually?

• A)Project A
• B)Project B
• C)You are indifferent since the NPVs are equal
• D)Neither project should be selected

---

Definitions:

Humanistic Psychologist

A type of psychologist who focuses on individual potential and stresses the importance of growth and self-actualization.

MMPI

The Minnesota Multiphasic Personality Inventory, a standardized psychometric test of adult personality and psychopathology.

Psychological Disorders

Mental disorders characterized by patterns of thought, feeling, and behavior that are distressing, disruptive, and not considered culturally normative.

Validity

The extent to which a test, assessment, or measurement accurately reflects or assesses the specific concept it is intended to measure.