Consider Cash Flows for Projects X and Y Such As

question 25

Multiple Choice

Consider cash flows for Projects X and Y such as: Project X Project Y
Year 1 $3000 $ 0
Year 2 $ 0 $3000
A rational person would prefer receiving cash flows sooner because

• A) the money can be reinvested.
• B) the money is nice to have around.
• C) the investor may be tired of a particular investment.
• D) the investor is indifferent to either proposal.

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Definitions:

Perform Successfully

Achieving or exceeding the set goals, standards, or expectations through competence, skill, or knowledge.

Goal Difficulty

The challenge associated with achieving a specific goal, often affecting motivation and performance.

Challenging

Referring to a task or situation that is demanding and tests one's abilities or resources.

Optimal Level

The most favorable, effective, or desirable degree or quantity of something for achieving a specific outcome.