When Evaluating a New Project,the Firm Should Consider All of the Following

question 14

Multiple Choice

When evaluating a new project,the firm should consider all of the following factors EXCEPT

• A) previous expenditures associated with a market testing.
• B) changes in working capital attributable to the project.
• C) the current market value of any equipment to be replaced.
• D) the resulting difference in depreciation expense if the project involves replacement.

Understand the concept of ethics and its significance in personal and professional contexts.

Differentiate between various views on ethics, such as utilitarian, moral-rights, and individualism.

Recognize the importance of values, both personal and organizational, in ethical decision-making.

Identify the relationship between ethical perspectives and business practices.

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Definitions:

Total Utility

Total utility is the total satisfaction or benefit a consumer receives from consuming a particular quantity of goods or services.

Diminishing Marginal Utility

The decrease in satisfaction or utility that a person derives from consuming each additional unit of a good or service.

Demand Curves

A graphical representation that shows the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.

Marginal Utility

The extra value or satisfaction garnered by a consumer with the acquisition of one more unit of a good or service.