When a Manager Analyzes a Project Using Only the Incremental

question 339

Multiple Choice

When a manager analyzes a project using only the incremental cash flows related to the project, the manager is following the _____ principle.

• A) Erosion.
• B) Net present value.
• C) Opportunity.
• D) Side effect.
• E) Stand-alone.

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Definitions:

Genes

Segments of DNA that are responsible for hereditary characteristics and serve as the basic units of heredity.

Dependent Variables

Variables in experimental research that are expected to change as a result of manipulation of independent variables; they are the outcomes measured by the researcher.

Independent Variables

In an experiment, the variable that is manipulated or altered to examine its effect on a dependent variable.

Demand Characteristics

The cues in a study that might tell a research participant what behaviors are expected or desirable in that setting.