Two Mutually Exclusive Projects, Expected to Last Indefinitely, Are Being

question 21

Multiple Choice

Two mutually exclusive projects, expected to last indefinitely, are being compared. Program A has annual profits and consumer surplus of $10 million and a one-time capital expenditure of $50 million. Program B has consumer surplus of $15 million and a one-time capital expenditure of $100 million. Using net present value as a criterion, which alternative should be selected?

• A) If the discount rate is 12%, Program B should be selected.
• B) If the discount rate is less than 10%, Program B should be selected.
• C) If the discount rate is 22%, neither program should be selected.
• D) The programs have the same net present value regardless of the discount rate used.
• E) Answers if the discount rate is less than 10%, Program B should be selected and if the discount rate is 22%, neither program should be selected are both correct.

Appreciate the benefits and challenges of group therapy compared to individual therapy.

Identify and describe behavioral therapy techniques used for specific conditions.

Understand the multi-axial system of the DSM-IV-TR and its five axes.

Identify the purposes and uses of the DSM-IV-TR in diagnosing psychological disorders.

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Definitions:

Product Redesign

The process of changing or updating a product's features, appearance, or performance to improve its appeal or functionality.

Non-Strategic

Decisions or actions taken without consideration of the competitive context or longer-term objectives.

Sequential Labor Negotiation

A process where labor negotiations or discussions are conducted in a series or sequence, typically one after another.

Commit Strategy

A decision-making approach where a company decides on and adheres to a specific course of action, even in the face of changing circumstances.