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

question 16

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 3 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 is 10% and the projects are mutually exclusive

• A) Project H should be chosen.
• B) Project T should be chosen.
• C) H and T are equally attractive.
• D) Both projects should be chosen.

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Definitions:

Tassili n'Ajjer

A plateau in the Sahara desert, located in southeast Algeria, famed for its prehistoric rock art and dramatic landscapes.

Supernatural Beings

Entities that exist beyond or without the natural world, often possessing powers or characteristics beyond what is physically possible.

Kuba Ndop Figures

Carved wooden statues from the Kuba Kingdom in Central Africa, representing the spirits of kings or notable individuals, often used in rituals and as guardians.

Sapi Saltcellars

Intricately carved saltcellars made by the Sapi people of West Africa during the late Middle Ages, highly valued for their craftsmanship and artistry in the European trade market.