Alternative Plants

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Utility Corp, a company with a specific level of cash in its budget, has been clearing uninhabited land near a national park for the construction of a coal plant. This practice continues even though greater annual profits can be made from a nuclear plant, which will not damage the nearby park, than from a coal plant, which will injure the habitat.

Which of the following, if true, most helps to explain why Utility Corp has been pursuing the less profitable of the two economic activities mentioned above?