Findell Corporation Is Considering Two Projects, a and B, and It

question 75

Multiple Choice

Findell Corporation is considering two projects, A and B, and it has gathered the following estimates for the projects: $$\begin{array} { | l | l | l | } \hline & \text { Project } A & \text { Project } \mathrm { B } \\\hline \text { Useful life } & \text { 5 years } & 5 \text { years } \\\hline \text { Present value of cash inflows } & \$ 84,360 & \$ 55,100 \\\hline \text { Present value of cash inflows } & \$ 77,000 & \$ 49,000 \\\hline & & \\\hline\end{array}$$ What is the net present value for project B?

• A) $7,360
• B) $6,100
• C) $1,260
• D) None of these answers is correct.

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Definitions:

Conflicting Objectives

Situations where two or more goals are at odds, making it challenging to achieve both simultaneously.

Compensation Philosophy

A guiding principle that defines how an organization values and manages employee compensation, including wages, salaries, and benefits.

Salary Limits

The maximum and minimum amounts that an organization is willing to pay for a particular job position, often determined by budget restrictions and market rates.

Red-Circled Rates

Pay rates that are above the maximum of the pay scale for a position, often protected for a period even if they exceed normal salary ranges.