A Financial Manager Who Does Not Follow the General Constraints

question 2

Multiple Choice

A financial manager who does not follow the general constraints of the NPV rule may:

• A) accept a negative project for fear of losing an investment opportunity.
• B) accept a marginally acceptable NPV project limiting the corporation's ability to choose a competing project.
• C) option the project to another firm.
• D) not take a positive NPV project even if the NPV is adequate reward to forego the option.

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Definitions:

Days Past Due

A term used to describe the number of days a payment or obligation remains unpaid after its due date.

Specific Date

A particular day specified for an event or deadline, clearly identified by a combination of day, month, and year.

Public Law 95-109

The Fair Debt Collection Practices Act of 1977, a United States federal law that limits the behavior and actions of third-party debt collectors attempting to collect debts on behalf of another person or entity.

Fair Debt Collection Practices Act

A federal law in the United States that limits the behavior and actions of third-party debt collectors attempting to collect debts on behalf of another person or entity.