You Will Not Be Able to Meet the Deadline You

question 74

Multiple Choice

You will not be able to meet the deadline you originally agreed to with a client. Asking for an extension instead of just stating that they will have to accommodate for the delay ________.

• A) will be perceived as a sign of weakness
• B) will likely be seen as aggression
• C) is never recommended
• D) is more likely to generate goodwill and achieve a good business result
• E) may lead to confusion and dishonesty

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Definitions:

Negative NPV

A condition where the net present value (NPV) of an investment is less than zero, implying that the investment’s costs outweigh its benefits.

Cost of Capital

The minimum return needed to justify investing in a capital budgeting endeavor, such as the construction of a new facility.

Cost of Capital

Signifies the expected rate of return that market participants demand in order to commit money to an investment, considering risk and potential gains.

IRR

Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of investments, indicating the annualized rate of return that sets the net present value of all cash flows (both positive and negative) from a particular project equal to zero.