Use the Table for the Question(s)below

question 1

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects:
-Assume that projects A and B are mutually exclusive.The correct investment decision and the best rational for that decision is to:

• A)invest in project A since NPV_B < NPV_A.
• B)invest in project B since IRR_B > IRR_A.
• C)invest in project B since NPV_B > NPV_A.
• D)invest in project A since NPV_A > 0.

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Definitions:

Chance

The occurrence of events in the absence of any deliberate design or predictable cause.

Motivation

The reason or reasons one has for acting or behaving in a particular way; an internal process that makes a person move toward a goal.

Performance

The act of executing a task or function, often measured against predefined standards.

Goal Specificity

The extent to which a goal is detailed, explicit, and clear as opposed to vague or general.