Consider Two Mutually Exclusive Projects a & B

question 9

Multiple Choice

Consider two mutually exclusive projects A & B.If you subtract the cash flows of opportunity B from the cash flows of opportunity A,then you should:

• A)take opportunity A if the regular IRR exceeds the cost of capital.
• B)take opportunity A if the incremental IRR exceeds the cost of capital.
• C)take opportunity B if the regular IRR exceeds the cost of capital.
• D)take opportunity B if the incremental IRR exceeds the cost of capital.

Understand the effects of economic conditions and external factors on performance measurements and compensation.

Understand the influence of performance-based compensation systems on employee motivation and organizational effectiveness.

Differentiate between various types of compensation and benefits, including base pay, merit pay, bonuses, stock options, and gain-sharing.

Recognize the legal and ethical considerations in employment, including wrongful dismissal and discrimination protections.

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