When the Risk of Obsolescence Is High,managers Will Want

question 117

Multiple Choice

When the risk of obsolescence is high,managers will want

• A)a shorter payback period.
• B)a longer payback period.
• C)a payback period equal to the life of the investment.
• D)all of these.
• E)none of these.

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Definitions:

Total Damage

The cumulative harm or loss resulting from an event or series of events, often used in the contexts of legal claims or environmental impacts.

Market Level

Refers to the overall condition or status of a market, including factors like total supply, demand, price levels, and market participants.

External Benefits

Benefits that are enjoyed by individuals or firms who did not directly participate in the transaction or activity that produced the benefit, also known as positive externalities.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies as production increases.