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:

Conservation Tasks

Cognitive tasks developed by Piaget to assess a child's ability to recognize that certain properties of objects, such as quantity or volume, can remain the same despite changes in the form or arrangement of the objects.

Piagetian Preoperational Stage

A developmental stage in early childhood (approximately aged 2-7 years) characterized by symbolic thinking, egocentrism, and a lack of logical operations, according to Piaget's theory.

Conservation

In cognitive development, the understanding that an object's or substance's quantity remains the same despite changes in its shape or form.

Appearance-Reality

A cognitive development concept referring to the ability to differentiate between what something appears to be and what it actually is.