In the Case of Mutually Exclusive Projects, NPV and PI

question 53

Multiple Choice

In the case of mutually exclusive projects, NPV and PI are likely to yield conflicting decisions when:

• A)the projects require the same net investment
• B)the projects are significantly different in size
• C)multiple rates of return are a possibility
• D)none of these

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Definitions:

Criterion Deficiency

A situation where a performance evaluation fails to capture all aspects of job performance, leading to an incomplete assessment.

Criterion Contamination

Occurs when performance appraisals or evaluations include factors irrelevant to the actual job performance, leading to inaccurate assessments.

Performance Review

A formal assessment in which the performance of an employee is documented and evaluated, often leading to feedback and development plans.