Assume a Project Has Normal Cash Flows

question 15

Multiple Choice

Assume a project has normal cash flows.Given this,you should accept the project

• A)if,and only if,the NPV is exactly equal to zero.
• B)only if the NPV is equal to the initial cash flow.
• C)if the NPV is positive and reject it if the NPV is negative.
• D)if the total cash inflows exceed the initial cash outflow.
• E)because it has positive cash flows for every time period after the initial investment.

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Definitions:

Cross-functional Teams

Teams composed of members from different departments within an organization, working together to achieve a common goal.

Effectiveness

The degree to which objectives are achieved and the desired results are obtained efficiently.

Shared Mental Models

Shared Mental Models are the knowledge structures held by members of a team that enable them to form accurate explanations and expectations about tasks, team processes, and each other's behaviors.

Cross-functional Teams

Teams composed of members from different departments or areas of expertise, working together towards a common goal.