The company is evaluating Project A and Project B, with Project A having a higher rate of return. The document recommends choosing Project A since it has the higher return. However, it also notes the company should consider additional factors like cost, budget, and risk when making its decision.

1. 9 9. A company is evaluating two projects, Project A and Project B, n order to determine If it
should take on one of them. Project A has a higher rate of return than Project B. What should the
company do? (5 points)
Solution
The company should choose "A" project that has higher rate of return if that is the only
measure the company wants to consider as policy. thought the company should also see the
factors like project cost, cost budget, risk and other likely.