When Making Screening Decisions Using the Net Present Value Method,a

question 83

Multiple Choice

When making screening decisions using the net present value method,a project is acceptable if:

• A)the NPV is greater than the hurdle rate.
• B)the NPV is greater than the IRR.
• C)the NPV is positive.
• D)the NPV is negative.

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Definitions:

Labor Productivity

A measure of economic performance that examines the amount of goods and services produced by one hour of labor.

Unionized Labor Force

A workforce that is represented by one or more unions, which negotiate wages, working conditions, and other employment terms on behalf of their members.

Entrepreneur

An individual who initiates and operates a new business venture, taking on financial risks in the hope of profit.

Government Effectiveness

A measure of the quality of public services, the civil service and its independence from political pressures, the quality of policy formulation, and the credibility of the government's commitment to its policies.