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:

Autonomy

The capacity to make an informed, uncoerced decision or the right of self-governance, often considered a fundamental aspect of working ethically with individuals.

Self-Disclosure

The act of revealing personal information to others which can strengthen social ties and increase intimacy.

Online Bullying

The use of digital technologies, like social media and messaging platforms, to harass, threaten, or embarrass individuals, typically anonymously.

Deepened Friendships

Relationships that have grown stronger and more significant through shared experiences, trust, and emotional bonding.