Project January Has a NPV of $50,000, Project December Has

question 30

Multiple Choice

Project January has a NPV of $50,000, project December has a NPV of $40,000. Which of the following circumstances could make it possible to choose December over January?

• A) January has a shorter payback period.
• B) The projects are mutually exclusive.
• C) The projects have unequal lives.
• D) The projects are mandated.

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Definitions:

Personal Property

Describes movable assets or belongings that are not permanently attached to or part of real estate; includes items such as furniture, vehicles, and electronics.

Promissory Estoppel

A rule of law that bars an individual from retracting a commitment made to another if the second party has justifiably depended on this pledge to their harm.

Justifiable Reliance

A principle in contract law that an individual can act based on the assurance or promise of another, assuming such dependence is reasonable and logical.

Contract Enforcement

The legal mechanisms and procedures used to ensure that the terms of a contract are fulfilled by the parties involved, or to seek remedies in cases of breach.