When Two or More Mutually Exclusive Alternative Investments Have Unequal

question 13

Multiple Choice

When two or more mutually exclusive alternative investments have unequal ____, neither the net present value nor the internal rate of return method yields reliable accept-reject information unless the projects are evaluated for an equal period of time.

• A) lives
• B) net cash flows
• C) net investments
• D) None of these are correct

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Definitions:

Conditioning

A process of behavior modification by which a subject comes to associate a desired behavior with a previously unrelated stimulus.

Cognitive-behavioral

A therapeutic approach that aims to solve problems concerning dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic procedure.

Humanistic-existential

A psychological approach focusing on individual experience, personal freedom, and the meaning of life.

Psychodynamic-gestalt

An integrative therapeutic approach combining elements from both psychodynamic therapy, which focuses on unconscious processes, and Gestalt therapy, emphasizing present moment awareness and personal responsibility.