You Are Given a Job to Make a Decision on Project

question 53

Multiple Choice

You are given a job to make a decision on project X, which is composed of three independent projects A, B, and C that have NPVs of + $70, -$40 and + $100, respectively. How would you go about making the decision about whether to accept or reject the project?

• A)Accept project X as it has a positive NPV.
• B)Reject project X.
• C)Break up the project into its components: Accept A and C, but reject B.
• D)Break up the project into its components: Accept C.

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Definitions:

Marketing

is the process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Potential Value

Represents the future benefits or value that an asset, investment, or action will potentially generate, not yet realized.

Innovation Process

A series of steps that begins with ideation and proceeds through to the implementation of new products, services, or processes.

Idea Creation

The process of generating, developing, and communicating new concepts or innovations.