Project Boulder Has a Payback Period of 2

question 40

Essay

Project Boulder has a payback period of 2.4 years,an NPV of $10,000,and a profitability index of 1.10.Project Flintstone has a payback period of 3.0 years,an NPV of $10,000 and a profitability index of 1.05.If only one project can be executed,which project should be selected? Explain your reasoning.

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Definitions:

Mechanical Device

Any piece of machinery or tool that performs a task using moving parts powered in various ways, including manually, electrically, or through hydraulic means.

Finger

A digit on the hand, of which humans typically have five on each hand, used for manipulative and sensory purposes.

Pressure

The force per unit area applied on a surface or the feeling of stress or urgency induced by external or internal factors.

Parenteral Nutrition

Nutritional support provided intravenously, bypassing the usual process of eating and digestion.