?Which of the following criteria should be used to choose a project if there is a conflict between two mutually exclusive projects?
A. ?The project whose internal rate of return is higher than its modified internal rate of return should be chosen.
B. ?The project whose internal rate of return is equal to the expected rate of return should be chosen.
C. ?The project with a higher net present value (NPV) should be chosen.
D. ?The project whose payback period is equal to the expected years required to recover the original investment should be chosen.
E. ?The project whose discounted payback period is longer than its traditional payback period should be chosen.
Answer: C
You might also like to view...
Management of Premium Discovery Company is compensated through large salaries, stock options and bonuses tied to the company's working capital growth. The CEO is constantly holding meetings to ensure that management is on target for increased operating income each month. Based upon the above information only, what type of probable motivation is there to commit fraud at the Premium Discovery
Company? a. Incentive. b. Opportunity. c. Rationalization. d. Expectation.
The firm has a negative net cash flow in the month(s) of ________. (See Table 4.3)
A) January, February, and March B) February and March C) January and February D) February
Which of the following statements is true of an international strategy?
A. It enables firms to leverage their home-based core competencies in foreign markets. B. It is advantageous when firms face high pressures for both local responsiveness and cost reductions. C. It relies on joint ventures to reap economies of scale by accessing a larger market. D. It effectively protects a firm from exchange rate fluctuations.
System 4 management deals with the extent of:
a. trust in the organization. b. change. c. participativeness. d. work group teamwork.