Jefferson International Is Trying to Choose Between the Following Two

question 8

Multiple Choice

Jefferson International is trying to choose between the following two mutually exclusive design projects: $$\begin{array} { | r | r | r | } \hline \text { Year } & \text { Cash Flow } & \underline { \text { Cash } } \\&{ ( \mathrm { A } ) } & \underline { \text { Flow } ( \mathrm { B } ) } \\\hline 0 & - \$ 55,000 & - \$ 29,000 \\\hline 1 & 12,300 & 19,400 \\\hline 2 & 15,100 & 16,600 \\\hline 3 & 50,000 & 900 \\\hline\end{array}$$ The required return is 13 percent.If the company applies the profitability index (PI) decision rule,which project should the firm accept? If the company applies the NPV decision rule,which project should it take?
Given your first two answers,which project should the firm actually accept?

• A)Project A; Project B; Project A
• B)Project A; Project B; Project B
• C)Project B; Project A; Project A
• D)Project B; Project A; Project B
• E)Project B; Project B, Project B

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Definitions:

Cohen's Kappa

A statistical coefficient that measures inter-rater agreement for qualitative (categorical) items.

Interrater Reliability

Refers to the degree of agreement among independent observers or raters evaluating the same phenomenon.

Interrater Reliability

The degree of agreement among raters, demonstrating how consistently different observers assess the same phenomenon.

Test-retest Reliability

The consistency of a measure assessed by testing the same individuals at two different points in time.