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Two projects being considered are mutually exclusive and have the following projected cash flows: If the required rate of return on these projects is 10 percent, which would be chosen and why?
Fundamental Attribution Error
The tendency to underestimate the influence of external factors and overestimate the role of internal factors in explaining others' behavior.
External Attribution
The process of attributing the cause of a person's behavior to situational or external factors.
Illusory Correlation
The belief in a connection between two variables even when there is actually no such connection present.
Beginner's Luck
The phenomenon where an inexperienced person achieves success in a particular activity on their first try.
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