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Yonan IncIs Considering Projects S and L,whose Cash Flows Are Shown

question 84

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Yonan Inc.is considering Projects S and L,whose cash flows are shown below.These projects are mutually exclusive,equally risky,and not repeatable.If the decision is made by choosing the project with the shorter payback,some value may be forgone.How much value will be lost in this instance? Note that under some conditions choosing projects on the basis of the shorter payback will not cause value to be lost. Yonan Inc.is considering Projects S and L,whose cash flows are shown below.These projects are mutually exclusive,equally risky,and not repeatable.If the decision is made by choosing the project with the shorter payback,some value may be forgone.How much value will be lost in this instance? Note that under some conditions choosing projects on the basis of the shorter payback will not cause value to be lost.   A)  $39.40 B)  $33.11 C)  $41.39 D)  $28.47 E)  $37.74

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Definitions:

Human Capital

Represents the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Human Resource Planning

The ongoing process of systematically planning ahead to optimize and meet the future human resource needs of an organization, in alignment with its strategic goals.

Recruitment

Recruitment is the process of identifying, attracting, interviewing, selecting, and hiring employees to fill job vacancies within an organization.

Selection

The process of choosing individuals to hire from a pool of qualified job applicants.

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