If There Is a Conflict Between Mutually Exclusive Projects Due

question 47

Multiple Choice

If there is a conflict between mutually exclusive projects due to the IRR, one should:

• A)drop the two projects immediately.
• B)spend more money on gathering information.
• C)depend on the NPV as it will always provide the most value.
• D)depend on the AAR because it does not suffer from these same problems.
• E)None of the above.

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Definitions:

Drive-Reduction

A theory of motivation that posits that behavior is driven by the need to reduce internal states of tension caused by unmet biological needs.

Incentive

A factor that motivates or encourages someone to do something, often linked to rewards or punishments.

Optimal Level

Pertains to the most favorable or advantageous level or stage of a process, activity, or variable.

Drive Reduction

A theory in psychology suggesting that motivation arises from the desire to reduce internal tension caused by unmet biological needs, such as hunger or thirst.