You Are Considering the Following Two Mutually Exclusive Projects A)Project A; Because It Pays Back Faster
B)Project A; Because

question 46

Multiple Choice

You are considering the following two mutually exclusive projects.The required return on each project is 14 percent.Which project should you accept and what is the best reason for that decision? $$\begin{array} { | c | r | r | } \hline \underline { \text { Year } } & \underline { \text { Project A } } & \text { Project B } \\\hline 0 & - \$ 24,000 & - \$ 21,000 \\\hline 1 & 9,500 & 6,500 \\\hline 2 & 16,200 & 9,800 \\\hline 3 & 8,700 & 15,200 \\\hline\end{array}$$

• A)Project A; because it pays back faster
• B)Project A; because it has the higher profitability index
• C)Project B; because it has the higher profitability index
• D)Project B; because it has the higher net present value
• E)Project A; because it has the higher net present value

Understand the purpose and application of a voucher system in controlling cash disbursements.

Describe effective cash management principles and their application in business operations.

Differentiate between cash and cash equivalents.

Comprehend the gross method of recording purchases.

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Definitions:

Inner Ear

Part of the ear that contains the sensory organs for hearing and balance; contains the bony and membranous labyrinth.

Oscillation

A repetitive variation or fluctuation, typically in time, of a system about a central value or between two or more different states.

Eyes

Organs of the visual system that allow one to perceive light and convert it into electrochemical signals for interpretation by the brain.

Palpebral Conjunctiva

Conjunctiva that covers the inner surface of the eyelids.