Project H Requires an Initial Investment of $100,000 and the Produces

question 84

Multiple Choice

Project H requires an initial investment of $100,000 and the produces annual cash flows of $50,000, $40,000, and $30,000. Project T requires an initial investment of $100,000 and the produces annual cash flows of $30,000, $40,000, and $50,000. If the required rate of return is greater than 0% and the projects are mutually exclusive

• A) H will always be preferable to T.
• B) T will always be preferable to H.
• C) H and T are equally attractive.
• D) The project rankings will change with different discount rates.

---

Definitions:

Sherman Antitrust Act

A landmark 1890 U.S. legislation aimed at regulating competition among enterprises, preventing monopolies, and promoting fair business practices.

Cross-Border Mergers

Mergers involving companies headquartered in different countries with the aim of expanding market reach, efficiency or capabilities.

Sherman Act

An 1890 United States antitrust law aimed at preserving competitive markets by prohibiting monopolies, cartels, and other forms of collusion that restrict trade.

Federal Economic Policies

Strategies implemented by a government to manage its economy, involving decisions on taxation, government spending, and monetary supply.