Suppose Your Firm Is Considering Two Mutually Exclusive, Required Projects

question 71

Multiple Choice

Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown as follows. The required rate of return on projects of both of their risk class is 10 percent, and the maximum allowable payback and discounted payback statistic for the projects are two and a half and three and a half years, respectively. $$\begin{array} { l l l l l } \text { Time } & 0 & 1 & 2 & 3 \\\text { Project A Cash Flow } & - 1,000 & 300 & 400 & 700 \\\text { Project B Cash Flow } & - 500 & 200 & 400 & 300\end{array}$$ Use the discounted payback decision rule to evaluate these projects; which one(s) should be accepted or rejected?

• A)Accept both A and B
• B)Accept neither A nor B
• C)Accept A, reject B
• D)Reject A, accept B

Understand the concept of managing diversity and its impact on an organization.

Identify ways an organization can foster intrapreneurship and innovation.

Recognize different political strategies employed by organizations and their implications.

Differentiate between intrapreneurs and entrepreneurs and their roles within an organization.

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Definitions:

Thaddeus Stevens

A prominent U.S. politician and lawyer who was a fierce advocate for the abolition of slavery and played a key role in the implementation of Reconstruction policies.

Federal Protection

Legal safety measures enforced by the federal government to ensure the rights, well-being, or preservation of individuals, groups, or resources.

Redistribution

The process of distributing or reallocating resources, wealth, or property among a population or areas to achieve greater equality or efficiency.

Black Code Laws

Laws passed in the southern United States after the Civil War, aimed at restricting African Americans' freedoms and compelling them to work in a labor economy based on low wages or debt.