Which One of the Following Indicates That a Project Should

question 36

Multiple Choice

Which one of the following indicates that a project should be rejected? Assume the cash flows are normal, i.e., the initial cash flow is negative.

• A)Average accounting return that exceeds the requirement
• B)Payback period that is shorter than the requirement period
• C)Positive net present value
• D)Profitability index less than 1.0
• E)Internal rate of return that exceeds the required return

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Definitions:

Genetically Bound

Characteristics or traits that are inherited from parents through genes.

Oedipus Complex

A psychological theory that suggests a child's unconscious sexual desire for the opposite-sex parent and jealousy toward the same-sex parent.

Sibling Rivalry

Competition, conflict, and jealousy between siblings, often stemming from a desire for parental attention, recognition, and favoritism.

Physical Inferiority

A perception of one's physical self as lesser or weaker compared to others, which can influence personality development and self-esteem.