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

question 135

Multiple Choice

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

• A) 1.096
• B) 1.124
• C) 0.889
• D) 0.913

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Definitions:

Alternative Dispute Resolution (ADR)

A term applied to different types of employee complaint or dispute resolution procedures.

Non-Union Workplaces

Employment settings where a labor union does not represent the workers or influence the working conditions.

Positive Discipline

A method of training or correcting an individual that focuses on the encouragement of acceptable behavior rather than punishment of unacceptable behavior.

Encouragement

The act of giving support, confidence, or hope to someone, often to motivate or improve morale.