A financial manager is considering two projects, A and B. A is expected to add $2 million to profits
this year while B is expected to add $1 million to profits this year. Which of the following
statements is MOST correct?
A) The manager should select project A or he is irrational.
B) The manager should select project A because it maximizes profits.
C) The manager should select the project that maximizes long-term profits, not just one year of
profits.
D) The manager should select the project that causes the stock price to increase the most, which
could be A or B.
D
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Comprehensive income must be reported on the income statement
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
Disclosure will become less important in the future because of market efficiency.
Unit labor costs will not rise in unison with compensation rates if gains in __________ outstrip increases in hourly compensation.
Fill in the blank(s) with the appropriate word(s).
Solving nonlinear programming models may be more difficult than solving linear programming models because:
a. Nonlinear constraints may create discontinuous areas that satisfy all constraints. b. Nonlinear constraints are difficult to translate into mathematical functions. c. Nonlinear constraints are associated with a quantity discount. d. All of the above