An Organization Should Consider Only Projects with a Negative NPV

question 17

True/False

 An organization should consider only projects with a negative NPV if financial value is a key criterion for project selection.

---

Definitions:

Inferior Technology

Technology that is less efficient or effective compared to the available alternatives.

Production Possibilities Frontier

A curve depicting the maximum feasible combinations of two or more goods or services an economy can produce when all resources are fully and efficiently utilized.

Circular-flow Diagram

A Circular-Flow Diagram represents an economic model visually demonstrating the movement of money through markets between households and companies.

Financial Assets

Assets that are paper claims on some return or income, such as stocks, bonds, or bank deposits.