Consider the following projects X and Y where the firm can choose only once. Project X costs $600
and has cash flows of $400 in each of the next two years. Project B also costs $ 600 and generates
cash flows $500 and $275 for the next two years, respectively. Sketch a net present value profile
(graphs) for each of these projects. For graphs you may use approximation

Which project should the firm choose if the cost of capital is 10 percent? What if the cost of capital
is 25 percent?

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answervulnerability assessment;

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.