Anne Is Considering Two Independent Projects with 2-Year Lives

question 3

Multiple Choice

Anne is considering two independent projects with 2-year lives.Both projects have been assigned a discount rate of 13 percent.She has sufficient funds to finance one or both projects.Project A costs $38,500 and has cash flows of $19,400 and $28,700 for Years 1 and 2,respectively.Project B costs $41,000,and has cash flows of $25,000 and $22,000 for Years 1 and 2,respectively.Which project,or projects,if either,should you accept based on the profitability index method and what is the correct reason for that decision?

• A)You should accept both projects since both of their PIs are positive.
• B)You should accept Project A since it has the higher PI and you can only select one project.
• C)You should accept both projects since both of their PIs are greater than 1.
• D)You should only accept Project A since it is the only project with a PI greater than 1.
• E)Neither project is acceptable.

Comprehending the role of economic and material benefits in mate selection.

Grasping the fundamentals of the technical hypothesis for the evolution of language.

Insight into the genetic basis of language and speech, focusing on the role of the FOXP2 gene.

Recognizing differences in sexual and mating preferences between men and women.

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Definitions:

Accounting Principles

The rules and guidelines that companies must follow when reporting financial data and accounting information.

Proprietorships

Business entities owned by one individual, where there is no legal distinction between the owner and the business.

Partnerships

A form of business organization in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership agreement.

Cooperatives

Business organizations owned and operated by a group of individuals for their mutual benefit, where members democratically control the operations and profits are distributed according to each member's contribution.