Assume You Use All Available Methods to Evaluate Projects

question 11

Multiple Choice

Assume you use all available methods to evaluate projects.If there is a conflict in the indicated accept/reject decision between two mutually exclusive projects due to the IRR-based indicator,you should:

• A)accept both projects if both are acceptable according to NPV.
• B)combine both projects into one larger project.
• C)ignore the IRR and rely on the decision indicated by the NPV method.
• D)base the final decision on the payback method.
• E)reject both projects due to ambiguity in the decision-making process.

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Definitions:

Limited Partnership

A partnership consisting of at least one general partner and at least one limited partner who is not responsible for the debts and obligations of the business beyond the amount of their investment.

Service of Process

The procedure by which a party to a lawsuit gives an appropriate notice of initial legal action to another party (such as a defendant), court, or administrative body to exercise jurisdiction over that person or property.

LLPs

Limited Liability Partnerships, a form of business organization where partners have limited liabilities and it protects each partner from debts against the partnership arising from professional malpractice lawsuits.

Certificate of Authenticity

A document or seal that verifies the authenticity of an item or artwork, usually by the creator or issuing authority.