A firm is trying to determine which of two products it should launch. Product A has an expected life of three years. It will bring in cash flows of $11,000 in each of the three years. Product B has an expected life of two years. It will bring in cash flows of $15,500 in each of the two years. Assume a discount rate of 8%. Which product should the firm, based on NPV alone, select?

a. Product A
b. Product B
c. Product A and B are equivalent
d. NPV for the products cannot be calculated with the information given.


a. Product A

Business

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a. True b. False Indicate whether the statement is true or false

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When a union violates a union contract, the employer can seek relief by:

A. Requesting an injunction against the union B. Suing the union for contract violation C. Filing a grievance against the union D. Filing an unfair labor practice charge with the NLRB

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Which of the following individuals is not considered a relative for purposes of the related parties loss disallowance rules under Sec. 267?

A. grandfather B. husband C. sister-in-law D. brother

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A local political group is divided on how to present their candidate. The debate is getting heated. Finally, the head of the group focuses the team on defending their idea based on facts, rather than personal preference. This is an example of  ______ conflict.

A. escalating B. integrative C. dysfunctional D. functional E. programmed

Business