Project a Is Expected to Generate Positive Cash Flow of $1

question 140

Multiple Choice

Project A is expected to generate positive cash flow of $1 million in 10 years while Project B is expected to generate $500,000 in 5 years.Therefore

• A) Project A is preferred because shareholder value is based on cash flow.
• B) Project B is preferred because its cash flow is expected to be received sooner than the cash flow from Project A.
• C) Both projects have equal value because they average $100,000 per year.
• D) Project B may be preferred to Project A if the opportunity cost of money is high enough.

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Definitions:

Transactional Perspective

A viewpoint emphasizing the exchanges between individuals and their environment, often used in understanding human behavior.

Transformational Perspective

An approach that emphasizes the ongoing, dynamic process of change, innovation, and evolution in organizations, individuals, or societies.

Charismatic Leadership

A leadership style characterized by the leader's ability to inspire and motivate followers through personal charm and persuasion.

Transformational Leadership

Leadership approach that causes change in individuals and social systems, enhancing motivation, morale, and performance.