Refer to the Following Information About Three Projects with the Same

question 29

Multiple Choice

Refer to the following information about three projects with the same expected lives.If a company wants to rank these three projects:

• A) Project X is preferable because it has the lowest profitability index
• B) Project Y is preferable,because it has the highest amount of net present value
• C) Project Z is preferable,because it has the highest profitability index.
• D) Project X is preferable,because its profitability index is below 1.

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Definitions:

Managerial Decision Needs

The information and insights required by managers to make informed and effective decisions in organizational contexts.

Human Resource Accounting

The process of identifying, measuring, and communicating information about human resources to aid management within an organization.

Dollar Figure

A numerical value or amount expressed in terms of dollars, often used in financial reporting, budgeting, and transactions.

HR Objectives

The goals or plans set by the Human Resources department to enhance workforce performance and meet organizational needs.