Worcester Corp Is Considering Two Mandated Projects

question 33

Multiple Choice

Worcester Corp is considering two mandated projects.They would serve the same purpose and be mutually exclusive.The present value of total costs over a five-year period for Project November is $50,000.The present value of total costs over a four-year period for Project December is $40,000.The company uses a discount rate of 9%.Which project should it choose and why?

• A)November because the NPV is higher.
• B)November because EAC is higher.
• C)December because it has a shorter life.
• D)December because it has lower EAC.

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Definitions:

Injuries

A term referring to physical harm or damage to a person's body.

Complaint

A complaint is a formal legal document filed in court by someone who claims to have suffered damages from a defendant, outlining the basis of the lawsuit.

Litigation

The process of resolving disputes or defending legal rights in court; involves a lawsuit or legal action being taken.

Civil Lawsuit

A legal proceeding in which one party sues another for a wrongdoing that has caused harm, seeking compensation or rectification under civil law.