Which of the Following Capital Budgeting Proposals Is Most Likely

question 33

Multiple Choice

Which of the following capital budgeting proposals is most likely to display a conflict of interests?

• A)the proposal with the highest NPV.
• B)the proposal with the longest payback period.
• C)the proposal with highest IRR and quickest payback.
• D)the proposal to solve pollution problems.

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Definitions:

Operant Conditioning

A learning process through which the strength of a behavior is modified by reward or punishment.

Habituation

Getting used to something in the environment and not responding as strongly anymore.

Systematic Desensitization

A treatment for phobias that attempts to reduce fear in many small steps by associating the feared thing with calmness.

Variable-Ratio Reinforcement

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, promoting a high and steady response rate.