Question: A financial manager is considering two projects, A and B . A is expected to add $ 2 million to profits this year while B
A financial manager is considering two projects, A and B A is expected to add $ million to profits this year while is expected to add $ million to profits this year while B is expected to add $ million to profits this year. Which of the following statements is most correct?
The manager should select project A because it maximizes profits.
The manager should select the project that maximizes longterm profits, not just one year of profits.
The manager should select project A or he is irrational.
The manager should select the project that causes the stock price to increase the most, which could be The manager should select project A because it maximizes profits or The manager should select the project that maximizes longterm profits, not just one year of profits.
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