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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Work on a new dwelling was started on July 1. On August 1, the builder placed on record a mortgage. On September 1, work was completed and on October 25, the general contractor, not having been paid, files a mechanic's lien. Said lien has an effective date as of:
a. July 1 b. August 1 c. September 1 d. October 25
A survey is ________ if it produces identical results when repeated under similar conditions
A) valid B) objective C) representative D) bias-free E) reliable