A construction firm is evaluating two value-adding projects. The first project deals with...
Question:
A construction firm is evaluating two value-adding projects. The first project deals with building access roads to a new terminal at the local airport. The second project is to build a parking garage on a piece of land that the firm owns adjacent to the airport. The firm's decision will be to:
A. Accept both projects because they are independent projects.
B. Accept both projects because they are contingent projects.
C. Pick the one that adds the most value because they are mutually exclusive projects.
D. Pick neither project.
Financial decisions:
Financial decisions play a vital role in finalizing and depicting the future of the firm. The correct decisions taken by the firm can take the firm to new heights whereas, the wrong decisions can cause losses and bring inability to work smoothly and efficiently within the firm.
Answer and Explanation: 1
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View this answerThe correct option is (a)
The firm should make a strategy to accept both projects. The reason behind this is, both the projects are independent in...
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Business Objectives: Definition, Purpose & Types
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