A Firm Is Considering Four Projects with the Following PIs,NPVs,and

question 90

Essay

A firm is considering four projects with the following PIs,NPVs,and Costs.Project A: PI of 1.3,NPV of $3,600,and cost of $12,000; Project B: PI of 1.4,NPV of $5,600,and cost of $14,000; Project C: PI of 1.5,NPV of $5,000,and cost of $10,000; Project D: PI of 2.1,NPV of $8,800,and cost of $8,000.Rank the projects from best to worst in terms of their NPVs.Now rank the projects from best to worst in terms of their PIs.

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Definitions:

Eusocial

Describes a complex social structure in certain species, where there is a division of labor between reproductive and non-reproductive individuals, cooperative care of young, and overlapping generations.

Foraging

The behavior of animals seeking and obtaining food resources in their environment.

Laying Eggs

The process by which female animals produce and deposit eggs into the environment or onto a substrate, a common reproductive strategy in many species.

Selfish Herd

A theory suggesting individuals in a population will position themselves to reduce their own risk from predators by moving towards the center of a group.