Which of the Following Projects Would You Feel Safest in Accepting

question 34

Multiple Choice

Which of the following projects would you feel safest in accepting? Assume the opportunity cost of capital to be 12% for each project.

• A) "A" has a small, but negative, NPV.
• B) "B" has a positive NPV when discounted at 10%.
• C) "C's" cost of capital exceeds its rate of return.
• D) "D" has a zero NPV when discounted at 14%.

---

Definitions:

Ingroup Bias

The tendency for people to give preferential treatment or have favorable attitudes towards members of their own group over those from different groups.

Reinforcement

In behavioral psychology, a consequence applied that strengthens a behavior, making it more likely to occur again.

Modeling

A learning process in psychology where individuals learn new behaviors or information by observing and imitating others.

Conformity

The process of aligning one's attitudes, beliefs, and actions with the norms or standards of a group.