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:

Copyrights

Legal rights given to creators over their original works, protecting against unauthorized copying, distributing, or modifying of the content.

Copy Protection

A mechanism or technology used to prevent unauthorized copying of digital material, such as software, games, movies, or music.

E-commerce Website

A website that allows people to buy and sell goods and services over the internet.

B2B Model

Stands for Business-to-Business model, a type of transaction or business conducted between two companies, such as wholesaler and retailer, rather than between a company and individual consumer.