You Are Considering Two Independent Projects Both of Which Have

question 73

Multiple Choice

You are considering two independent projects both of which have been assigned a discount rate of 8%.Based on the profitability index,what is your recommendation concerning these projects?

• A)You should accept both projects since both of their PIs are positive.
• B)You should accept project A since it has the higher PI.
• C)You should accept both projects since both of their PIs are greater than 1.
• D)You should only accept project B since it has the largest PI and the PI exceeds 1.
• E)Neither project is acceptable.

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Definitions:

Autonomy

The capacity to make an informed, uncoerced decision; often associated with the concept of independence and self-determination.

Kohlberg's Theory

A theory of moral development that describes how individuals progress through different stages of moral reasoning.

Ethical Behavior

Conduct that is in alignment with accepted principles of right or wrong governing the conduct of a person or the members of a profession.

Universal Ethical Principles

Fundamental moral guidelines that are considered to be universally applicable to all individuals regardless of culture, time, or situation.