Which of the Following Statements Is FALSE

question 1

Multiple Choice

Which of the following statements is FALSE?

• A)Traditionally,managers have used the equivalent annual benefit method to choose between projects of different lives.
• B)The equivalent annual benefit method ignores the value of any real options because it assumes that the projects will always be replaced at their original terms.
• C)If the future costs (or benefits)are certain with mutually exclusive projects,then we must use a real options approach to determine the correct decision.
• D)The equivalent annual benefit method accounts for the difference in project lengths by calculating the constant payment over the life of the project that is equivalent to receiving the NPV today and then selecting the project with the higher equivalent annual benefit.

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Definitions:

Intrinsic Rewards

Refers to the internal satisfaction and personal fulfillment derived from accomplishing tasks or pursuing interests, rather than external incentives.

Job Enrichment

A design method aimed at increasing employee satisfaction and productivity by adding more meaningful tasks to their job role.

Financial Incentives

are monetary rewards given to motivate or encourage specific behaviors or outcomes.

Unattainable Ideal

A standard or goal that is impossible to achieve, often leading to disappointment or continuous striving.