You Are Considering Two Independent Projects Both of Which Have

question 80

Multiple Choice

You are considering two independent projects both of which have been assigned a discount rate of 15 percent.Based on the profitability index,what is your recommendation concerning these projects?

$\begin{array}{l}\text { Project A }\\\begin{array}{cc}\text { Year } & \text { Cash Flow } \\\hline 0 & -\$ 46,000 \\1 & \$ 32,000 \\2 & \$ 27,000\end{array}\end{array}$ $\begin{array}{l}\text { Project B }\\\begin{array}{cc}\text { Year } & \text { Cash Flow } \\\hline 0 & -\$ 50,000 \\1 & \$ 18,000 \\2 & \$ 54,000\end{array}\end{array}$

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Definitions:

Ethically Uncomfortable Alternatives

Choices or options that present moral dilemmas or discomfort due to potential harm or ethical issues.

Utility Question

A query aimed at determining the usefulness or practical value of information, actions, or decisions.

Crisis Environments

Situations or settings characterized by instability, danger, or uncertainty, requiring urgent attention and action.

Probabilities

The measure of the likelihood that an event will occur, usually expressed as a number between 0 and 1.