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

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? WHY?

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

2. If you look at the stock price of the companies listed in the Indonesian Stock Market (IDX), some stocks are relatively stable, even flat line, but some are very volatile? What makes it possible, knowing that they are all companies operating in Indonesia?

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