Which Mutually Exclusive Project Would You Select,if Both Are Priced

question 34

Multiple Choice

Which mutually exclusive project would you select,if both are priced at $1,000 and your discount rate is 15 percent; Project A with three annual cash flows of $1,000,or Project B,with three years of zero cash flow followed by three years of $1,500 annually?

• A) Project A
• B) Project B
• C) you are indifferent since the NPVs are equal
• D) Neither project should be selected

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Definitions:

Services

Services are intangible activities or benefits provided by one party to another, often characterized by their inability to be physically possessed.

Vertically

Refers to the upward or downward direction within an organization's hierarchy, often relating to communication, decision-making, or organizational structure.

Communication

The process by which information is exchanged between a sender and a receiver.

Coordination

The process of organizing people or groups so that they work together properly and well.