Ted,a Project Manager,wants to Invest in a Project with an Initial

question 68

Multiple Choice

Ted,a project manager,wants to invest in a project with an initial cost of $58,500 and cash flows of $32,400 and $38,500 in Years 1 and 2.Rosita,his boss,requires a discount rate of 10 percent and also a return of $1.10 in today's dollars for every $1 invested.Will Ted get his project approved? Why or why not?

• A)Yes; because the NPV is positive
• B)Yes; because the PI is greater than 1
• C)Yes; because both criteria are met
• D)No; because the project does not meet either requirement
• E)No; while the project returns more than 10 percent it does meet $1.10 per $1 requirement.

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Definitions:

Effectiveness

The degree to which something is successful in producing a desired result; efficiency.

Client System

In social work, this term refers to the individual, family, group, or community that is seeking help or services.

Termination Phase

In counseling and therapy, it refers to the final stage of the client-professional relationship where therapy goals have been met and the relationship is ended.

Planned Change Process

A systematic approach designed to transition individuals, teams, and organizations from a current state to a desired future state.