Which One of the Following Statements Is Correct Concerning Bid

question 203

Multiple Choice

Which one of the following statements is correct concerning bid prices?

• A) The competitor who wins the bid is the one who submits the highest bid price.
• B) The winning bid may be at a price that is below break-even especially if there is a related aftermarket for the product.
• C) A bid price is computed based on 110% of a firm's normal required return.
• D) A bid price should be computed based solely on the operating cash flows of the proposed project.
• E) A bid price should be computed based on a zero% required rate of return.

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Definitions:

Frustration

A feeling of irritation or annoyance caused by being unable to achieve a goal or satisfy a desire.

Anger

A strong feeling of annoyance, displeasure, or hostility often triggered by perceived wrongs.

Leads to Aggression

Refers to the factors or processes that result in aggressive behavior, indicating a cause-and-effect relationship between specific stimuli and aggressive responses.

Hostile Perception Bias

The tendency to perceive social interactions in general as being aggressive.