Dorian International Has $75,000 That It Can Invest for 2

question 66

Multiple Choice

Dorian International has $75,000 that it can invest for 2.5 years.After that,the funds are needed to repay an outstanding bond issue.The company has two potential projects that are within the funding limit.Project A has an initial cost of $40,000 and cash flows of $24,000 a year for 2 years.Project B has an initial cost of $75,000 and cash flows of $27,000 a year for 4 years.If the required rate of return on both projects is 12 percent,what is your recommendation?

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

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Definitions:

Specific Tasks

Are defined, precise work assignments or responsibilities assigned to individuals or teams.

Superordinate Goal

A shared goal that cannot be achieved by any one group alone and requires cooperative effort, often used to reduce conflict between groups by emphasizing common interests.

Level Of Cooperation

The extent to which individuals or groups within an organization or community are willing to work together towards common goals or interests.

One Leader

A leadership style or situation where a single individual exercises authority and makes decisions for a group or organization.