Two Projects Are Under Consideration by the Same Company at the Same

question 20

Essay

Two projects are under consideration by the same company at the same time. Project Alpha has a NPV of $20 million and an estimated useful life of 10 years. Project Beta has a NPV of $12 million and also an estimated useful life of 10 years. What should the company's decision be?
a) if the projects involve unrelated expansion decisions or
b) if the projects are mutually exclusive because they would have to occupy the same space?

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Definitions:

Overt Expressions

Clear, visible expressions or displays of emotions, thoughts, or attitudes.

Stereotype Threat

The fear that one might confirm the stereotypes that others hold.

Self-defeating Prophecy

A prediction that causes itself to become true due to negative feedback between belief and behavior.

Jigsaw Classroom

A cooperative learning technique for reducing feelings of prejudice by having students interact and cooperate to learn material.