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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Rock formed from magma erupted from a volcano, known for its distinctive texture and composition.

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Genes that control the expression of a multitude of other genes, directing the development and differentiation of specific body parts or cell types.

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The process during which a fertilized egg divides and undergoes various changes to form a fully developed embryo.

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