Consider the Following Two Mutually Exclusive Projects Whichever Project You Choose,if Any,you Require a Rate of Return

question 50

Multiple Choice

Consider the following two mutually exclusive projects: $$\begin{array} { | r | r | r | } \hline \underline { \text { Year } } & \underline { \text { Cash Flow } } & \underline { \text { Cash } } \\& \underline { ( A ) } & \underline { \text { Flow } ( B ) } \\\hline0 &-\$54,000&-\$23,000\\\hline 1 & 12,700 & 11,600 \\\hline 2 & 23,200 & 11,200 \\\hline 3 & 27,600 & 12,500 \\\hline 4 & 46,500 & 6,000 \\\hline\end{array}$$ Whichever project you choose,if any,you require a rate of return of 14 percent on your investment.If you apply the payback criterion,you will choose Project ______; if you apply the NPV criterion,you will choose Project ______; if you apply the IRR criterion,you will choose Project _____; if you choose the profitability index criterion,you will choose Project ___.Based on your first four answers,which project will you finally choose?

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

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Definitions:

Romantic

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Sexual Attraction

The feelings of desire or interest towards others based on their sexual characteristics, which can be influenced by various biological, psychological, and social factors.

Gender Nonconforming

Term used when gender identity and/or expression differs from societal expectations about gender roles.

Biological

Pertaining to the science of life and living organisms, involving their structure, function, growth, origin, evolution, and distribution.