Use the Table for the Question(s)below

question 53

Multiple Choice

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

• A)invest in project Beta since NPV_Beta > 0.
• B)invest in project Alpha since NPV_Beta < NPV_Alpha.
• C)invest in project Beta since IRR_B > IRR_A.
• D)invest in project Beta since NPV_Beta > NPV_Alpha > 0.

---

Definitions:

Groupthink

A psychological phenomenon occurring within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Fake Electric Shocks

A method used in psychological experiments where participants are led to believe they will receive or have received electrical shocks, when in fact no such shocks are actually administered.

Dissenting Opinion

An opinion written by a judge or justice that disagrees with the decision reached by the majority of his or her colleagues.

Milgram's Orders

Refers to the orders given in Stanley Milgram's obedience experiment, which studied participants' willingness to administer electric shocks to others under authority instructions.