When a Manager Does Not Accept a Positive-NPV Project, Shareholders

question 118

Multiple Choice

When a manager does not accept a positive-NPV project, shareholders face an opportunity cost in the amount of the:

• A)Project's initial cost.
• B)Project's NPV.
• C)Project's discounted cash flows.
• D)Soft capital rationing budget.

---

Definitions:

Important Considerations

are crucial factors or aspects that need careful thought and examination when making decisions or analyzing situations.

Utilitarians

Philosophers or adherents of the ethical theory called utilitarianism, which holds that the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number.

Inherently Moral

Pertaining to actions, objects, or decisions considered to possess moral qualities by their very nature.

Early Consequentialist

Refers to philosophical thinkers or theories in the history of ethics that judge the rightness or wrongness of an action by its consequences or outcomes, predating modern consequentialism like utilitarianism.