A Financial Manager Is Considering Two Projects,A and B

question 89

Multiple Choice

A financial manager is considering two projects,A and B.A is expected to add $2 million to profits this year while B is expected to add $2 million to profits this year while B is expected to add $1 million to profits this year.Which of the following statements is MOST correct?

• A)The manager should select project A because it maximizes profits.
• B)The manager should select the project that maximizes long-term profits,not just one year of profits.
• C)The manager should select project A or he is irrational.
• D)The manager should select the project that causes the stock price to increase the most,which could be A or B.

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Definitions:

Lateral Hypothalamus

A region of the brain that plays a crucial role in controlling hunger, thirst, and other motivated behaviors.

Hunger

The physiological sensation or condition that signals the body's need for food intake.

Loss of Appetite

A decrease in the desire to eat, which can be a symptom of numerous conditions or emotional states.

Regaining Weight

The process of putting weight back on after having lost it, often a concern in the context of dieting and health.