Project Sigma Requires an Investment of $1 Million and Has

question 76

Multiple Choice

Project Sigma requires an investment of $1 million and has a NPV of $10. Project Delta requires an investment of $500,000 and has a NPV of $150,000. The projects involve unrelated new product lines. The firm can raise unlimited amounts of capital.

• A) Both projects should be accepted because they have positive NPV's.
• B) Neither project should be accepted because they might compete with one another.
• C) Only project Delta should be accepted. Alpha's NPV is too low for the investment.
• D) The company should look at other investment criteria, not just NPV.

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Definitions:

Persistent Depressive Disorder

A chronic form of depression characterized by a depressed mood for most of the day, more days than not, for at least two years.

Major Depressive Disorder

A psychiatric condition characterized by a lasting feeling of melancholy or lack of desire in pursuits, which severely impacts daily lifestyle.

Major Depressive Disorder (MDD)

A mental health condition marked by a prolonged period of sadness or despair that significantly interferes with daily functioning.

Adolescents

The transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood (age of majority).