To Avoid Rejecting Projects That Actually Should Be Accepted

question 135

Multiple Choice

To avoid rejecting projects that actually should be accepted,
1. intangible benefits should be ignored.
2. conservative estimates of the intangible benefits' value should be incorporated into the NPV calculation.
3. calculate net present value ignoring 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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Definitions:

Informed Consent

Procedure (often legally required prior to treatment administration) in which a patient receives a full and understandable explanation of the treatment being offered and makes a decision about whether to accept or refuse the treatment.

Humane Environment

A setting or condition that shows compassion and respect for the well-being of all beings involved.

Wyatt v. Stickney

A landmark legal case that established the right to adequate treatment for people in psychiatric hospitals in the United States.

Major Depression

a severe mood disorder characterized by persistent feelings of sadness, loss of interest in activities, and a range of physical and cognitive symptoms, affecting daily functioning.