Which of the Following Contributes to High Project Risk

question 50

Multiple Choice

Which of the following contributes to high project risk?

• A)Probability of failure is low.
• B)If the project fails,the results can be easily rectified.
• C)The project is fully insured against failure.
• D)Consequences of project failure are serious.

Understand the effect of project's salvage value on investment decisions.

Understand the purpose and significance of performance appraisal processes in organizations.

Identify and analyze various performance appraisal methods and their effectiveness.

Recognize legal and ethical considerations in performance appraisals.

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Definitions:

Pure Discount Loan

A loan where the borrower receives a single lump sum payment at maturity instead of periodic payments, with interest incorporated in the repayment amount.

Present Value Problem

A calculation to determine the current value of a future amount of money or stream of cash flows given a specified rate of return.

Perpetuity

A financial instrument or investment that pays a fixed amount of cash flows indefinitely.

Annuity

An economic offering that guarantees regular payouts to an individual, typically used to supplement the income of those who are retired.