Chapter 2 • A framework for financial decision making
There are sets of multiple-choice questionsand missing-word questions
available on the website. These specifically cover the material contained in this
chapter. These can be attempted and graded (with feedback) online.
There are also two additional problems, with solutions, that relate to the material
covered in this chapter.
Go to http://www.pearsoned.co.uk /atrillmclaneyand follow the links.‘
3 Project management, which will cost a further £10,000. If the project is abandoned
the manager concerned will be made redundant at a cost of £8,000. Under the terms
of the manager’s contract, no redundancy pay is due if the project goes on to
completion.
Show figures and explanations that indicate whether, assuming a wealth maximisation
objective, the project should be continued or abandoned.