A Firm Is Evaluating Three Capital Projects

question 65

Multiple Choice

A firm is evaluating three capital projects.The net present values for the projects are as follows: The firm should ________.

• A)accept Projects 1 and 2,and reject Project 3
• B)accept Projects 1 and 3,and reject Project 2
• C)accept Project 3,and reject Projects 1 and 2
• D)accept all projects

---

Definitions:

Equilibrium

A state in which the forward and reverse reactions occur at equal rates in a chemical reaction, resulting in no net change in the concentration of reactants and products.

Dynamic Equilibrium

Dynamic equilibrium occurs when the rate of forward reaction equals the rate of the reverse reaction in a chemical system, resulting in the concentrations of reactants and products remaining constant over time.

Equilibrium Constant

A mathematical expression that relates the concentrations of reactants and products in a chemical reaction at equilibrium.

Ph

A measure that provides insight into the acidity or basicity level of an aqueous solution; values range from 0 (very acidic) to 14 (very basic).