You Are Considering the Following Two Mutually Exclusive Projects

question 72

Multiple Choice

You are considering the following two mutually exclusive projects.The required rate of return is 14.6 percent for project A and 13.8 percent for project B.Which project should you accept and why?

• A) project A; because it has the higher required rate of return
• B) project A; because its NPV is about $4,900 more than the NPV of project B
• C) project B; because it has the largest total cash inflow
• D) project B; because it has the largest cash inflow in year one
• E) project B; because it has the lower required return

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Definitions:

Attitudes

Attitudes are psychological tendencies or evaluations expressed by favoring or disfavoring particular people, places, things, or events.

Leadership Styles

The approaches and methods used by leaders to motivate, guide, and manage teams.

Gender

Socially constructed roles, behaviors, expressions, and identities of girls, women, boys, men, and gender diverse people.

Contingency Model

A leadership theory that suggests the effectiveness of a leader depends on the context of the situation and the leader’s ability to adapt to it.