Dorian International Has $75,000 That It Can Invest for 2

question 10

Multiple Choice

Dorian International has $75,000 that it can invest for 2.5 years.After that,the funds are needed to repay an outstanding bond issue.The company has two potential projects that are within the funding limit.Project A has an initial cost of $40,000 and cash flows of $24,000 a year for 2 years.Project B has an initial cost of $75,000 and cash flows of $27,000 a year for 4 years.If the required rate of return on both projects is 12 percent,what is your recommendation?

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

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Definitions:

Companionate Love

A deep and enduring form of love characterized by emotional intimacy and commitment rather than passion.

Passionate Love

A deep, intense feeling of attraction and desire in a romantic relationship.

Sustaining Relationships

The processes and actions involved in maintaining and enhancing close personal connections over time.

Passionate Love

An intense emotional and romantic attachment to a partner, characterized by feelings of euphoria and longing.