thousands of bulbs. Diane plans to use a $10-$year horizon to analyze this proposal, figuring that changes to lighting technology will eventually make this investment obsolete.

The company uses a $10\%$ discount rate to analyze capital budgeting proposals.

a$.$ What is the NPV of each investment? Which investment $($if either$)$ should the company undertake?

simply equal the sum of the two individual projects. Calculate the NPV of the combined project. Does it appear to be worth doing? Would you recommend investing in the combined project?

c$.$ What is the ethical issue that Diane faces? Is any harm done if she does the favor for David as he asks?

a$.$ The NPV of the LED project is : ${?}_{{?}_{?}}|.($Round to the nearest dollar.$)$

The NPV of the solar project is $$,($Round to the nearest dollar.$)$

Data table

Which investment $($if either$)$ should the company undertake? $($Select the best answer below.$)$

A$.$ The company should not choose either project.

B$.$ The company should choose the Solar project because its NPV is negative.

C$.$ The company should choose both projects.

D$.$ The company should choose the LED project because its NPV is positive.

b$.$ The NPV of the combined project is : $.($Round to the nearest dollar.$)$

Does it appear to be worth doing? Would you recommend investing in the combined project? $($Select the best answer below.$)$

A$.$ The combined project has a positive NPV$,$ which means it is worth doing in general. However, since the NPV of the LED project is positive

B$.$ The combined project has a positive NPV$,$ which means it is worth doing in general. Since the NPV of the LED project has helped balance

C$.$ The combined project has a positive NPV$,$ which means it is worth doing in general. Since the NPV of the LED project is also positive, the

$($Click on the icon here $$ in order to copy the contents of the data table

a spreadsheet.$)$

D$.$ The combined project has a positive NPV$,$ which means it is not worth doing in general. However, since the NPV of the Solar project is les

c$.$ What is the ethical issue that Diane faces? Is any harm done if she does the favor for David as he asks? $($Select all answers that apply.$)$

A$.$ If Diane does the favor David asks, she is causing the company to undertake a project that should be rejected $($the Solar project$),$ which $h$

B$.$ When choosing between mutually exclusive projects that both have a positive NPV$,$ the project with the largest NPV should be chosen.

C$.$ There is no harm done if Diane does the favor David asks because the company will spend the money on the projects anyway.

F$.$ If Diane does the favor David asks, she is causing the company to undertake the Solar Project, a project that should be rejected, which is unethical.