Sonny and James Are Both Considering the Same Project with the Cash

question 1

Multiple Choice

Sonny and James are both considering the same project with the cash flows shown below.Sonny is content earning 8 per cent on the project but James wants to earn at least 12 per cent.Who,if either,should accept this project?

• A)Sonny,but not James
• B)James,but not Sonny
• C)Sonny,James can either accept or reject as his NPV is zero
• D)neither Sonny nor James
• E)both Sonny and James

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Definitions:

Boomerang Close

A sales technique where objections from the customer are turned into reasons why they should make the purchase.

Rephrased Objection

A reworded or reinterpreted objection or concern raised typically in a negotiation or discussion.

Clearwater Hampers

A brand or company known for providing gift hampers, potentially filled with gourmet foods, wines, and other luxury items.

Hidden Objections

Consumer uncertainties or concerns regarding a product or service that are not openly expressed during the sales process.