Present Values of Alternative Projects of Different Lengths of Time

question 8

Multiple Choice

Present values of alternative projects of different lengths of time cannot be compared directly because

• A)the net benefits must be analyzed carefully in the more distant future
• B)the discounted net benefits in more distant years will be smaller, all else equal
• C)the net benefits can be compared directly.The premise of this question is incorrect.
• D)If a project lasting for fewer years can be repeated, its present value will be underestimated using standard analysis

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Definitions:

Lanham Act

The primary federal statute that governs trademarks, service marks, and unfair competition in the United States.

False Representations

Statements or claims made that are untrue or misleading, often in the context of sales or contracts.

Economic Espionage Act

A federal law passed in 1996 aimed at protecting trade secrets and combatting corporate and economic espionage.

Noncompetition Agreements

Legal contracts preventing an employee from entering into or starting a similar profession or trade in competition against the employer, usually within a specific time frame and geographic area.