You Are Considering Two Independent Projects

question 17

Multiple Choice

You are considering two independent projects.The required rate of return is 13.75 percent for Project A and 14.25 percent for Project B.Project A has an initial cost of $51,400 and cash inflows of $21,400,$24,900,and $22,200 for Years 1 to 3,respectively.Project B has an initial cost of $38,300 and cash inflows of $23,000 a year for 2 years.Which project(s) ,if either,should you accept?

• A)Accept both A and B
• B)Reject both A and B
• C)Accept A and reject B
• D)Accept B and reject A
• E)Accept either A or B but not both A and B

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Definitions:

Effective Communication

The transmission of information in such a way that the message is clearly understood by all parties involved, minimizing misunderstandings.

Sender's Message

The sender's message is the information or intention that the sender wants to communicate to the receiver, often formulated through language, body language, or other forms of communication.

Minimum Costs

The lowest possible expense incurred in the production of goods or services or in the achievement of a specific action or outcome.

Manager

A person who supports, activates, and is responsible for the work of others.