You Are Considering Two Mutually Exclusive Projects with the Following

question 71

Multiple Choice

You are considering two mutually exclusive projects with the following cash flows. Will your choice between the two projects differ if the required rate of return is 8% rather than 11%? If so,what should you do?

• A) yes; Select A at 8% and B at 11%.
• B) yes; Select B at 8% and A at 11%.
• C) yes; Select A at 8% and select neither at 11%.
• D) no; Regardless of the required rate, project A always has the higher NPV.
• E) no; Regardless of the required rate, project B always has the higher NPV.

Explain the classical, prototype, and exemplar views of concepts and their implications for categorization.

Understand the concept of priming and its implications for memory and cognition.

Recognize the limitations of prototype and exemplar views in explaining concept usage and categorization.

Understand the different views of concepts, including classical, prototype, exemplar, and schema views.

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Definitions:

Unrelated Diversification

Is used when a firm attempts to operate several unique businesses in different, unrelated markets. The basic logic behind unrelated diversification is that a company can shield itself from the adverse effects of business cycles, unexpected competition, and other economic fluctuations.

Analyzer Strategy

A business approach where a company monitors the market and competitors' actions, innovates incrementally, and follows the market leader's successful moves.

Entrepreneurial Employees

Employees who exhibit entrepreneurial characteristics within an organization, including innovation, risk-taking, and proactiveness, contributing to the company's growth.

Flexible

The ability to easily adapt to new, different, or changing requirements and situations.