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If Project a Has Present Worth of -$27 000 and Project

Question 2

Multiple Choice

If project A has present worth of -$27 000 and project B has present worth of -$26 000, then


A) project B should be accepted on the basis of maximum benefits
B) project A should be accepted because it has larger absolute value.
C) project B should be accepted on the basis of minimum costs.
D) the situation requires additional assessment since some of the costs or benefits might not be considered.
E) the decision cannot be made because of uncertainty.

Correct Answer:

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