Your firm is considering investing in one of two mutually exclusive projects. Project A requires an
initial outlay of $3,500 with expected future cash flows of $2,000 per year for the next three years.
Project B requires an initial outlay of $2,500 with expected future cash flows of $1,500 per year for
the next two years. The appropriate discount rate for your firm is 12% and it is not subject to capital
rationing. Assuming both projects can be replaced with a similar investment at the end of their
respective lives, compute the NPV of the two chain cycle for Project A and three chain cycle for
Project B.
A) $2,865 and $94 B) $3,528 and $136
C) $5,000 and $1,500 D) $2,232 and $85
D
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Monica wants to make sure that her sentences are easily understood. How long should she make them?
A) An average of 20 words B) At least 30 words C) No more than 8 words D) An average of 28 words
If a consultant does not appropriately follow the OD consulting process, this is an example of which of the following ethical dilemmas?
a. misrepresentation and collusion b. misuse of data c. value and goal conflict d. technical ineptness
?The general form of an interval estimate of a population mean or a population proportion is the _____ plus and minus the _____.
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Munson Machinery is considering the purchase of a machine that will provide a positive cash flow of $26,000 in year 1 and $35,000 in years 2 and 3. The cost of machine disposal is expected to be $1500 at the end of year 3. Munson requires a fourteen percent rate of return on expansion projects of this nature. What is the most Munson should pay for the machine?
A) $72,350 B) $82,479 C) $86,005 D) $94,500