When Calculating the NPV of a Project, Which of the Following

question 46

Multiple Choice

When calculating the NPV of a project, which of the following should not be considered?

• A)the cost of a new computer network that will be used by all the divisions of the firm.
• B)the cost of an advertising campaign for a new project since the campaign should be evaluated as an independent project.
• C)any cost that the project may impose on a division other than the division that will be undertaking the project.
• D)All of the above should be considered when calculating the NPV of a project.

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Definitions:

Social Networking Site

A platform on the internet where individuals can create profiles, interact with friends, share information, and join communities.

Mentored

Having received guidance, advice, or training from a more experienced person in a specific field or activity.

Company Intranet

A private network used within a corporation or organization to securely share company information and computing resources among employees.

Employees

Workers or staff who are employed by a company, organization, or individual, contributing to its operations or services.