A Financial Manager Is Considering Two Projects,A and B

question 117

Multiple Choice

A financial manager is considering two projects,A and B.A is expected to add $2 million to profits this year while B is expected to add $1 million to profits this year.Which of the following statements is MOST correct?

• A) The manager should select project A because it maximizes profits.
• B) The manager should select the project that maximizes long-term profits, not just one year of profits.
• C) The manager should select project A or he is irrational.
• D) The manager should select the project that causes the stock price to increase the most, which could be A or B.

---

Definitions:

Self-esteem

An individual's subjective evaluation of their own worth, encompassing beliefs about oneself as well as emotional states such as triumph, despair, pride, and shame.

Conditional Positive Regard

Acceptance and support of a person that depends on meeting certain conditions or standards set by another.

Carl Rogers

An influential American psychologist who founded the humanistic approach to psychology, emphasizing the importance of the self and the individual's subjective experience.

Sense of Self

An individual's awareness of their own personality, traits, and values, contributing to their unique identity.