To Best Understand a Proposed Positive Net Present Value Project

question 62

Multiple Choice

To best understand a proposed positive net present value project, managers should

• A)recheck all calculations.
• B)assume there are no forecast errors.
• C)identify sources of economic rent.
• D)evaluate other similar projects the company has undertaken in the past.

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Definitions:

Volley Principle

Theory of pitch that states that frequencies from about 400 Hz to 4,000 Hz cause the hair cells (auditory neurons) to fire in a volley pattern, or take turns in firing.

Frequency Theory

Theory of pitch that states that pitch is related to the speed of vibrations in the basilar membrane.

Hammer (Malleus)

A bone in the middle ear that transmits sound vibrations from the eardrum to the other ossicles.

Stirrup (Stapes)

A small bone in the middle ear that is involved in transmitting sound vibrations to the inner ear.