A Firm with Unlimited Funds Must Evaluate Five Projects

question 77

Multiple Choice

A firm with unlimited funds must evaluate five projects. Projects 1 and 2 are independent and Projects 3, 4, and 5 are mutually exclusive. The projects are listed with their returns. A ranking of the projects on the basis of their returns from the best to the worst according to their acceptability to the firm would be

• A) 4, 1, 2 or 5, and 3.
• B) 4, 1, and 2.
• C) 3, 2 or 5, 1, and 4.
• D) 4, 1, 5, and 3.

---

Definitions:

Two-Tail

Describes tests or intervals in statistics that consider extreme values in both tails of the distribution to test hypotheses or compute confidence intervals.

P-Value

The probability of observing data at least as extreme as the data actually observed, under the assumption that the null hypothesis is true.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, used as a starting point for statistical testing.

P-Value

The probability of observing test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is true.