Which of the Following Is a Partial Solution to Motivate

question 139

Multiple Choice

Which of the following is a partial solution to motivate managers to accept proposed investments that are projected to generate net losses for the initial years, in spite of the internal rate of return expected to be greater than the required rate of return?

• A) Evaluate managers based on long-term profitability
• B) Evaluate managers on the short-run expectations of investments
• C) Do not evaluate managers based on investments
• D) Do not allow managers to make decisions on which investments to accept

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