You Are Considering the Following Two Mutually Exclusive Projects A)1328 Percent; B
B)13

question 23

Multiple Choice

You are considering the following two mutually exclusive projects.The crossover point is _____ and Project _____ should be accepted if the discount rate is 14 percent. $$\begin{array} { | r | r | r | } \hline \text { Year } & \text { Project A } & \text { Project B } \\\hline 0 & - \$ 43,000 & - \$ 43,000 \\\hline 1 & 18,000 & 29,000 \\\hline 2 & 18,000 & 14,000 \\\hline 3 & 28,000 & 21,000 \\\hline\end{array}$$

• A)13.28 percent; B
• B)13.28 percent; A
• C)0 percent; B
• D)15.96 percent; A
• E)15.96 percent; B

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Definitions:

Paul Ehrlich

A scientist known for his work in the fields of immunology and population control.

Julian Simon

An American economist known for his work on population, natural resources, and immigration, emphasizing that human ingenuity can solve many perceived problems.

Resource Prices

The costs associated with the factors of production, including land, labor, and capital.

Natural Resources

Resources that exist without any actions of humankind, obtained from the environment, often used to produce goods and services.