You Are Considering Two Independent Projects

question 11

Multiple Choice

You are considering two independent projects.The required rate of return is 13.75 percent for Project A and 14.25 percent for Project B.Project A has an initial cost of $51,400 and cash inflows of $21,400,$24,900,and $22,200 for Years 1 to 3,respectively.Project B has an initial cost of $38,300 and cash inflows of $23,000 a year for 2 years.Which project(s) ,if either,should you accept?

• A)Accept both A and B
• B)Reject both A and B
• C)Accept A and reject B
• D)Accept B and reject A
• E)Accept either A or B but not both A and B

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Definitions:

Displaying Diplomas

The act of publicly presenting educational credentials or achievements, often to convey credibility or qualifications.

Operating Information

Essential data and insights concerning the day-to-day functioning and performance of a business or system.

Covering Up

The act of hiding errors, faults, or misconduct, usually to avoid criticism or consequences, not recommended in ethical leadership practices.

Magnifying Accomplishments

Actively emphasizing and enlarging one's achievements or contributions to appear more significant than they might actually be.