What Decision Should Be Made on a Project of Above-Average

question 11

Multiple Choice

What decision should be made on a project of above-average risk if the project's IRR exceeds the WACC?

• A)accept the project; NPV is positive.
• B)reject the project; NPV is negative.
• C)decide after discounting at the IRR.
• D)decide after discounting at an appropriate rate.

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Definitions:

Trait Theories

Theories that focus on identifying specific personality traits and characteristics that are believed to lead to effective leadership and successful performance.

Behavioral Theories

focus on explaining human behavior primarily through observable actions and environmental factors, rather than internal processes.

Contingency Leadership Perspective

The view that the effectiveness of the leader relates to the interaction of the leader’s traits or behaviors with situational factors.

Traits

Enduring characteristics or qualities that define an individual's behavior, personality, and tendencies.