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

question 67

Multiple Choice

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) $35.82
• B) $43.16
• C) $53.08
• D) $51.36
• E) $38.41

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Definitions:

Pulmonary Vein

A blood vessel that carries oxygenated blood from the lungs to the left atrium of the heart, distinct from other veins, which carry deoxygenated blood.

Oxygenated Blood

Blood that has been oxygenated, typically in the lungs, and is rich in oxygen, being carried away from the lungs to the body's tissues.

Superior Vena Cava

A large vein in the upper chest that carries deoxygenated blood from the body back to the heart.

Sharp Chest Pain

A severe and often sudden discomfort in the chest area, which can be a symptom of various medical conditions.