Suppose Your Firm Is Considering Two Mutually Exclusive, Required Projects

question 2

Multiple Choice

Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown as follows. The required rate of return on projects of both of their risk class is 10 percent, and the maximum allowable payback and discounted payback statistic for the projects are two and a half and three and a half years, respectively. $$\begin{array} { | l | c | c | c | c | } \hline \text { Time } & 0 & 1 & 2 & 3 \\\hline \text { Project A Cash Flow } & - 1,000 & 300 & 400 & 700 \\\text { Project B Cash Flow } & - 500 & 200 & 400 & 300 \\\hline\end{array}$$

• A)Accept both A and B
• B)Accept neither A nor B
• C)Accept A, reject B
• D)Reject A, accept B

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Definitions:

Selling Tools

Various methods, techniques, software, and materials used by salespeople to enhance the buying process and increase sales.

Deadly Sins

Typically refers to the major faults or mistakes in various contexts that can lead to failure or adverse outcomes.

Unprofessional Conduct

Behavior that fails to meet the established standards or ethics expected in a professional setting, often leading to disciplinary action.

Lack Of Dependability

The unreliability or inconsistency of someone or something in fulfilling obligations or producing consistent results.