A Division Manager Is Choosing Between Two Mutually Exclusive Projects

question 21

Multiple Choice

A division manager is choosing between two mutually exclusive projects.
The company requires any project to earn at least 12%.The manager believes that cash inflows from the project can be reinvested at the rate of 12%.Which project will the manager likely choose?

• A) Project B
• B) Project A
• C) both Projects A and B
• D) neither Project A nor B

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Definitions:

Direct Selling

A retail channel for selling products or services directly to consumers in a non-retail environment, usually through personal sales presentations at home or in the workplace.

Avon

Avon is a direct-selling company specializing in beauty, household, and personal care products.

Online Retailers

Businesses that sell goods or services over the internet to consumers, often through websites or mobile applications.

Shipping Costs

Expenses incurred in transporting goods from one place to another, often passed on to the buyer as part of the purchase price.