Project Sigma Requires an Investment of $1 Million and Has

question 95

Multiple Choice

Project Sigma requires an investment of $1 million and has a NPV of $10.Project Delta requires an investment of $500,000 and has a NPV of $150,000.The projects involve unrelated new product lines.

• A)Both projects should be accepted because they have positive NPV's.
• B)Neither project should be accepted because they might compete with one another.
• C)Only project Delta should be accepted.Alpha's NPV is too low for the investment.
• D)The company should look at other investment criteria,not just NPV.

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Definitions:

Skilled Help

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Separation Distress

Emotional pain experienced due to being apart from a significant person, group, or environment.

Recognition Memory

The ability to recognize previously encountered events, objects, or people.

Recall Memory

A type of long-term memory that involves the ability to access information without being cued, requiring one to actively retrieve and reconstruct information.