You Are Considering the Following Two Mutually Exclusive Projects

question 39

Multiple Choice

You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value. Required rate of return 10% 13%
Required payback period 2.0 years 2.0 years
Based on the net present value method of analysis and given the information in the problem,you should:

• A) accept both project A and project B.
• B) accept project A and reject project B.
• C) accept project B and reject project A.
• D) reject both project A and project B.
• E) accept whichever one you want as they represent equal opportunities.

---

Definitions:

Official Documentary Record

A document, typically produced by governments or organizations, that formally records events, decisions, or conditions.

Videotaped Records

Documented visual and audio records that capture events, behaviors, or sessions on video.

Triangulation

A method used in research to cross-validate data through the use of multiple data sources, methods, investigators, or theories.

Garbology

The study of a community or culture by analyzing its waste to understand its habits and behaviors.