Project Q Has an Initial Cost of $257,412 and Projected

question 30

Multiple Choice

Project Q has an initial cost of $257,412 and projected cash flows of $123,300 in Year 1 and $180,300 in Year 2.Project R has an initial cost of $345,000 and projected cash flows of $184,500 in Year 1 and $230,600 in Year 2.The discount rate is 12.2 percent and the projects are independent.Which project(s) ,if either,should be accepted based on its profitability index value?

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

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Definitions:

Confrontation

Confrontation is a direct engagement or conflict between individuals or groups over differing beliefs, opinions, or interests.

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, or motives to another person.

Identification

The process by which an individual aligns themselves with the values, beliefs, and practices of another person or group, often as a role model.

Sublimation

A defense mechanism in which socially unacceptable impulses are transformed into socially acceptable actions or behaviors.