A financial manager is considering two projects a and b. a, Ask an Expert

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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 because it maximizes profit.

b) The manager should select the project that maximizes long-term profits, not just one year of profits.

c) The manager should select project A or he is irrational.

d) The manager should select the project that causes the stock price to increase the most, which could be A or B.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M990930

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