Project H Requires an Initial Investment of $100,000 and the Produces

question 90

Multiple Choice

Project H requires an initial investment of $100,000 and the produces annual cash flows of $45,000 per year for each of the next three years.Project T also requires an initial investment of $100,000 and produces cash flows of $30,000 in year 1, $40,000 in year 2, and $70,000 in year 3.If the discount rate increases from 10% to 16%

• A)Project T should be chosen.
• B)both projects should be rejected.
• C)H and T are equally attractive.
• D)the project rankings will change.

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Definitions:

Randomly Assign

A method used in experimental designs where participants are allocated to different groups without any systematic criteria, helping to minimize bias.

Experimental Group

In research, the group of subjects who are exposed to the variable under investigation, in contrast to the control group.

Independent Variable

In experimental research, the variable that is intentionally manipulated by the researcher to explore its effect on a dependent variable.

Manipulation

The skillful or devious exertion of influence over someone for personal gain or to serve one's purposes.