Which of the Following Factors Indicate Higher Inherent Risks

question 29

Multiple Choice

Which of the following factors indicate higher inherent risks?

• A)Industry subject to changing trends
• B)Demand is not seasonal
• C)Industry has low chance of technological obsolescence
• D)Steady profitability

Evaluate the value of rough estimates of probability distribution of project NPV or IRR over point estimates.

Understand and apply scenario and decision tree analysis in capital budgeting.

Recognize the significance of options in capital budgeting including expansion, abandonment, and timing options.

Distinguish between different types of analysis including scenario, sensitivity, and simulation analyses in evaluating project variables.

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Definitions:

Baker's Cyst

A fluid-filled cyst behind the knee that can cause joint pain and swelling.

Right Knee

Refers specifically to the knee on the right side of the body, an important joint that supports movements such as walking, standing, and bending.

Infective Myositis

A muscular disease caused by an infection leading to inflammation of the muscles.

Left Shoulder

The region surrounding the joint between the upper arm and the torso on the left side of the body.