To Avoid Rejecting Projects That Actually Should Be Accepted, 1

question 47

Multiple Choice

To avoid rejecting projects that actually should be accepted, 1. intangible benefits should be ignared.
2. conservative estimates of the intangible benefits' value should be incorporated into the NPV calculation.
3. calculate net present value ignaring intangible benefits and then, if the NPV is negative, estimate whether the intangible benefits are worth at least the amount of the negative NPV.

• A)1
• B)2
• C)3
• D)both 2 and 3 are correct.

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A property interest that lasts for the life of the holder, allowing use of the property for their lifetime but not the right to sell it.

Property Rights

The rights and entitlements relating to the ownership and use of land and other forms of property.

Legal Formalities

Specific procedures or requirements prescribed by law for validating contracts, agreements, or other legal instruments.

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An individual who has made a will or testament to bequeath their estate upon their death.