You Are Considering the Following Two Mutually Exclusive Projects

question 21

Multiple Choice

You are considering the following two mutually exclusive projects.Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project.Neither project has any salvage value. Should you accept or reject these projects based on the profitability index?

• A)accept Project A and reject Project B
• B)reject Project A and accept Project B
• C)accept both Projects A and B
• D)reject both Projects A and B
• E)You cannot make this decision based on the profitability index.

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Definitions:

Wagner Act

Also known as the National Labor Relations Act of 1935, it established the legal right for workers to join unions and engage in collective bargaining in the US.

NIRA

The National Industrial Recovery Act of 1933, a U.S. law aimed at boosting economic recovery, reducing unemployment, and promoting industrial growth during the Great Depression.

Unionization Rights

Legal rights and protections that allow workers to form, join, or assist a union without fear of discrimination or retribution.

Wagner Act

United States legislation officially known as the National Labor Relations Act of 1935, which established the rights of employees to engage in collective bargaining and to form and join labor unions.