The Net Present Value Method Compares a Project's Future Net

question 72

True/False

The net present value method compares a project's future net income to the initial investment.

---

Definitions:

Valence

In psychology, the intrinsic attractiveness or aversiveness of an event, object, or situation.

Expectancy

The belief or anticipation that a certain action will lead to a desired outcome, often related to motivation.

Theory X

A management theory assuming that employees are inherently lazy and will avoid work if possible, necessitating control and coercion by management.

Conventional

Refers to what is traditional, accepted, or expected by society; often contrasted with innovative or unconventional methods or ideas.