Allin Company Is Considering Two Projects

question 12

Multiple Choice

Allin Company is considering two projects. Project W has an investment cost of $15,000 and a present value of net cash inflows of $21,000. Project T has an investment cost of $20,000 and a present value of net cash inflows of $29,000. Due to limited resources, Allin can invest in only one project. What should Allin do?

• A) Invest in Project W
• B) Invest in Project T
• C) Invest in either Project W or Project T because both have positive net present values
• D) The answer cannot be determined

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Definitions:

Job Satisfaction

The level of fulfillment, happiness, and contentment an employee feels towards their job.

Organizational Efficiency

The ability of an organization to implement its strategies and achieve its goals with minimum resources and waste.

Herzberg

Refers to Frederick Herzberg, a psychologist best known for developing the Motivation-Hygiene Theory, which distinguishes between factors that satisfy or dissatisfy employees in the workplace.

Responsibility

An obligation or duty to perform or complete a task with a level of care and competence.