Corp Suite Is Considering Two Expansion Options, but Does Not

question 11

Multiple Choice

Corp Suite is considering two expansion options, but does not have enough capital to undertake both.Project W requires an investment of $100,000 and has an NPV of $10,000.Project D requires an investment of $80,000 and has an NPV of $8200.If Corp Suite uses the profitability index to decide, it would

• A)choose D because it has a higher profitability index.
• B)choose W because it has a higher profitability index.
• C)choose D because it has a lower profitability index.
• D)choose W because it has a lower profitability index.

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Definitions:

Supervisors

Individuals in an organization responsible for overseeing the work of employees and ensuring that the work is completed efficiently and effectively.

Decertification Election

A vote by employees to determine whether they wish to remove their current union as their representative in collective bargaining.

Employees

Individuals who are hired to perform specific duties and tasks in exchange for compensation from an employer.

Bargaining Units

Workers grouped together by similar interests, who have a single labor union represent them in collective negotiation talks.