A Positive NPV Forecast for a New Project Is Reliable

question 58

Multiple Choice

A positive NPV forecast for a new project is reliable only if it is based on

• A)forecasts of cash flows.
• B)Michael Porter's theories.
• C)identifiable sources of economic rents.
• D)results from Monte Carlo analysis.

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Definitions:

Drug Therapy

The treatment of diseases or conditions with pharmaceutical drugs.

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful or destructive thought patterns to improve mood and behavior.

Sharp Reduction

A significant and rapid decrease in size, amount, or rate.

Psychosurgery

Surgery that removes or destroys brain tissue in an effort to change behavior.