Which of the Following Is True of a Project Which

question 11

Multiple Choice

Which of the following is true of a project which has a present value of cash inflow of $20,000 and the present value of the cash outflows of $15,000 (given the assumptions made in calculating the costs and cash inflows) ?

• A) The project cannot be carried out as the outflow is high.
• B) The net present value of the project is $35,000.
• C) The project will require 5 years to break even.
• D) The project generates wealth.

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Definitions:

Social Quandary

A complex or difficult situation arising from social interactions or societal expectations, often presenting a moral or ethical dilemma.

Layoff Dozens

The act of dismissing a large number of employees from their jobs in a relatively short period, often for economic reasons.

Utilitarian

Pertaining to the philosophy that the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Ethical Decision-making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.