A Firm with Unlimited Funds Must Evaluate Five Projects

question 140

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.

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Definitions:

Pituitary Gland

A small endocrine gland located at the base of the brain that produces hormones which regulate growth, metabolism, and reproduction.

Adrenal Glands

Small glands located on top of each kidney that produce a variety of hormones including adrenaline and cortisol, involved in stress responses.

Glial Cells

Supportive cells in the nervous system that provide support and nutrition, maintain homeostasis, form myelin, and participate in signal transmission in the nervous system.

Somatic Nervous System

The part of the peripheral nervous system responsible for carrying sensory and motor information to and from the central nervous system.