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:

Mean Annual Salary

The average yearly earnings of employees in a particular job, sector, or region.

Confidence Interval

A depot of values, based on statistical sample analysis, envisaged to contain the value of a yet-to-be-discovered population parameter.

Nova Scotia Nurses

Registered nurses and nurse practitioners located in the province of Nova Scotia, Canada, who provide various healthcare services.

Unpopped Kernels

Corn kernels that fail to explode and transform into popcorn when heated, often due to insufficient moisture content or uneven heating.