Which of the Following Was Not One of the Reasons

question 20

Multiple Choice

Which of the following was not one of the reasons that George McGovern overwhelmingly lost the 1972 presidential election?

• A) His vice-presidential running mate had received electric-shock therapy for nervous depression.
• B) He endorsed income redistribution and the decriminalization of marijuana.
• C) The Nixon campaign kept information about the Watergate burglary contained.
• D) There was a widely held perception that he was inept and radical.
• E) Nixon supporters broke into the Democratic National Committee headquarters and stole the election by falsifying ballots.

---

Definitions:

Real Options

Occur when managers can influence the size and risk of a project’s cash flows by taking different actions during the project’s life. They are referred to as real options because they deal with real as opposed to financial assets. They are also called managerial options because they give opportunities to managers to respond to changing market conditions. Sometimes they are called strategic options because they often deal with strategic issues. Finally, they are also called embedded options because they are a part of another project.

NPV Method

Net Present Value method, a process for evaluating and comparing investments by calculating the difference between the present value of cash inflows and outflows over a period of time.

Capital Budget

A spending plan for a company's long-term investments in assets and projects, intended to maintain or grow the business.

DCF Analysis

Discounted Cash Flow Analysis, a valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.