Suppose Your Firm Is Considering Two Mutually Exclusive, Required Projects

question 89

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:

Sojourner Truth

An African American abolitionist and women's rights activist who famously delivered the "Ain't I a Woman?" speech in 1851.

Women's Rights Movement

A social and political movement aimed at securing and expanding women's rights and equality in society.

Seneca Falls Convention

A pivotal gathering in 1848 that marked the beginning of the women's rights movement in the United States.

Margaret Fuller

An American journalist, critic, and women's rights advocate associated with the transcendentalist movement, known for her works advocating for equality and education for women.