Question

A construction firm is evaluating two value-adding projects. The first project deals with building access roads to a new terminal at the local airport. The second project is to build a parking garage on a piece of land that the firm owns adjacent to the airport. The firm's decision will be to(A) Accept both projects because they are independent projects(B) Accept both projects because they are contingent projects(C) Pick the one that adds the most value because they are mutually exclusive projects(D) Pick neither project

Answer 1

Answer:

In this case scenario when a firm has two different projects, the firm will

(A) Accept both projects because they are independent projects

Explanation:

The construction firm has to make some decisions right now, it has two candidate projects to add value. The first one is projecting which means building roads of access to the new airport terminal. While the second one is to build a parking garage in a place close to the airport. The firm should pick both because they are not the same project and there is not going to be any problem with the contest for winning the project. In some cases influence matters are involver, but not in this one.

Answer 2

Answer:

The answer is simple. The correct option is  accept both projects because they are independent projects.