Worcester Corp Is Considering Two Mandated Projects

question 67

Multiple Choice

Worcester Corp is considering two mandated projects. They would serve the same purpose and be mutually exclusive. The present value of total costs over a five year period for Project November is $50,000. The present value of total costs over a 4 year period for project December is $40,000. The company uses a discount rate of 9%. Which project should it choose and why?

• A) November because the NPV is higher.
• B) November because EAC is higher.
• C) December because it has a shorter life.
• D) December because it has lower EAC.

Understand methods through which organizations can achieve a competitive advantage.

Recognize the impact of technology on organizational strategy and operations.

Understand the role of observable culture and core values in influencing organizational behavior.

Appreciate the role of leaders in fostering an organizational culture that supports performance and adaptability.

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Definitions:

Retailer/Distributor Interface

The relationship or interaction point between retailers and distributors in the supply chain for product distribution.

Information Flow

The movement of information through a system or process, facilitating communication and decision-making.

Product Flow

The movement of goods from supplier to customer through various stages of production, storage, and distribution.

Funds Flow

The movement of money into and out of a company, showing how financial resources are allocated.