01 Tutorials Ch01 Introduction - Compatibility Mode - Saved to be wurdla, Zal Design Layout References Mailings Review View Developer Help Grammarly ' ' a AaBbCcL AaBbcc AaBbCI Emphasis Heading 1 1 Normal o Editing Dictate Sensitivity ADA 21 Paragraph Styles Voice Sensitivity 1.8.90 112 113 114 115 1.17 FINANCIAL MANAGEMENT TUTORIALS Chapter 1: An Introduction to the Foundations of Financial Management QUESTION 1 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 profits. 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. QUESTION 2 Profits represent money that can be spent, and as such, form the basis for determining the value of financial decisions. True or False. QUESTION 3