{% extends "global/Base.html" %}
{% load staticfiles otree_tags %}

{% block title %}


    Task Instructions:
{% endblock %}

{% block content %}


    <STYLE TYPE="text/css">
        .indented { padding-left: 50pt; padding-right: 50pt; }
        .tabmarg {margin-left: 80px}

    </STYLE>

    <p>
        For the duration of this experiment, assume you are a division manager in your firm. As part of your responsibilities as division manager,
        you make decisions regarding investments in new projects within your division. Each division’s required rate of return on investment
        is 10%, and so evaluations of a division manager’s performance include comparisons of the performance of that division’s projects to the
        required return. For the upcoming period, you have a budget of $3,500 to invest in five new projects for your division.
    </p>

    <p>
        To begin, you will complete a brief letter-number decoding task, after which you will be presented with information about different projects that can possibly be implemented
        in your division. Projects will be presented in pairs – Project A & Project B – and you will select one of the two projects from each pair
        that you would like to implement. You will repeat this process for a total of five pairs of projects.
    </p>
    <br>

    {% if condition == 1 %}
    <p>
        All projects presented to you require the same investment ($700). The information presented to you for each project will indicate: (1) the range
        of possible amounts of income the project could generate in the coming period, (2) the likelihood of the project generating each amount of income,
        and (3) the <b>residual income</b> that results from each possible amount of income.
    </p>

    <p>
        <b>Residual income</b> is a measure used by your firm to evaluate the performance of projects chosen by division managers, and it will be used to determine
        your bonus compensation. Residual income represents the income generated by a project in excess of your division’s required rate of return on investment
        of 10%:
    </p>

    <p class="indented">
        Residual income = Income generated by project – (Required rate of return x Investment in project)
    </p>

    <p>
        To illustrate, consider the following example: Project A generates $170 in income. Since your division’s required rate of return is 10%,
        and all projects you will consider in this experiment require a $700 investment, the residual income for project A is:
    </p>

    <p class="indented">
        $170 – (10% x $700) = $100
    </p>

    <p>
        Information for a sample pair of projects is presented below to allow you to become familiar with the type of information you will
        see during the actual project selection task:
    </p>

    <p>
       <br><img src="{% static "project_selection/SampleProjectsRI.jpg" %}"/><br><br>
    </p>


    {% elif condition == 2 %}

    <p>
        All projects presented to you require the same investment ($700). The information presented to you for each project will indicate: (1) the range
        of possible amounts of income the project could generate in the coming period, (2) the likelihood of the project generating each amount of income,
        and (3) the <b>return on investment</b> that results from each possible amount of income.
    </p>

    <p>
        <b>Return on investment</b> is a measure used by your firm to evaluate the performance of projects chosen by division managers, and it will be used to determine
        your bonus compensation. Return on investment is a measure of the income generated by a project as a percentage of the investment in that project:
    </p>

    <p class="indented">
        Return on investment = (Income generated by project / Investment in project) &times; 100(%)
    </p>

    <p>
        To illustrate, consider the following example: Project A generates $170 in income. Since all projects you will consider in this experiment require a $700
        investment, the return on investment for project A is:
    </p>

    <p class="indented">
        ($170 / $700) &times; 100(%) = 24% (rounded)
    </p>

    <p>
        Information for a sample pair of projects is presented below to allow you to become familiar with the type of information you will
        see during the actual project selection task:
    </p>

    <p>
       <br><img src="{% static "project_selection/SampleProjectsROI.jpg" %}"/><br><br>
    </p>


    {% elif condition == 3 %}

    <p>
        All projects presented to you require the same investment ($700). The information presented to you for each project will indicate: (1) the range
        of possible amounts of <b>net income</b> the project could generate in the coming period, and (2) the likelihood of the project generating each amount of income.
    </p>

    <p>
        <b>Net income</b> is a measure used by your firm to evaluate the performance of projects chosen by division managers, and it will be used to determine
        your bonus compensation. Net income represents the income generated by a project in excess of its costs.
    </p>

    <p>
        Information for a sample pair of projects is presented below to allow you to become familiar with the type of information you will
        see during the actual project selection task:
    </p>

    <p>
       <br><img src="{% static "project_selection/SampleProjectsNI.jpg" %}"/><br><br>
    </p>


    {% endif %}
    <p>
        As previously mentioned, you will be presented with five pairs of projects in total and will select one project from each pair that you would like to
        implement. Once you have finished completing all work and making all five selections, you will complete a post-task questionnaire, and will then learn
        the outcomes of your implemented projects and your compensation for the experiment.
    </p>

    <br>

    {% next_button %}

{% endblock %}