For a project selected using nonnumeric models, identify the true statement ${?}_{\text{r}\text{e}\text{g}\text{a}\text{r}\text{m}}$ priorities for project selection.

a$.$ operating necessity projects have priority over competitive necessity projects.

b$.$ competitive necessity projects have priority over operating necessity projects.

c$.$ operating necessity and competitive necessity projects have equal priority.

d$.$ product line extension projects have priority over operating necessity projects.

The drawback of the model is that it fails to consider cash flows obtained once the initial investment has been recovered.

a$.$ payback period

b$.$ average rate of return

c$.$ discounted cash flow

d$.$ profitability index

Which of the following is a type of numeric model?

a$.$ the sacred cow

b$.$ the operating necessity

c$.$ payback period

d$.$ the product line extension

The set of documents submitted when evaluating a project is referred to as the

a$.$ project proposal

b$.$ evaluation set

c$.$ evaluation criteria

d$.$ project manual

Part II: Answer all the questions $(40$ points$)$

Two new Internet site projects are proposed to a young start$-$up company. Project A will cost $$250,000$ to implement and is expected to have annual net cash flows of $$75,000.$ Project B will cost $$150,000$ to implement and should generate annual net cash flows of $$52,000.$

Using the payback period, which project is better, from a cash flow standpoint?

$($Calculate and briefly explain the founded result, which project is better to undertake$)(10$p$)$