Langston Labs has an overall (composite)Which set of projects would maximize shareholder wealth?
A) A and B.
B) A, B, and C.
C) A, B, and D.
D) A, B, C, and D.
E) A, B, C, D, and E.

Question

Quizplus · Accepted Answer

The goal is to maximize shareholder wealth, and the only way to determine the best set of projects is through a comprehensive evaluation of each project's net present value (NPV). Based on the information given, only A, B, and D have a positive NPV, so those projects should be chosen. Adding C to the list would decrease the overall profitability of the set of projects, so it should be excluded. Projects E's NPV is negative, so it should be avoided. Therefore, the best choice is C.

Langston Labs Has an Overall (Composite)Which Set of Projects Would