Suppose a Firm's CFO Thinks That an Externality Is Present

question 52

True/False

Suppose a firm's CFO thinks that an externality is present in a project, but that it cannot be quantified with any precision⎯estimates of its effect would really just be guesses.In this case, the externality should be ignored⎯i.e., not considered at all⎯because if it were considered it would make the analysis appear more precise than it really is.

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Definitions:

Opacity

The quality of being opaque, not allowing light to pass through.

Sclera

The white outer layer of the eye, responsible for providing structure and protection.

Fibrous Tissue

Connective tissue comprised mainly of collagen fibers, providing structural support and flexibility to the body.

Eyeball

The spherical part of the eye that contains structures necessary for vision, including the iris, pupil, and retina.