According to Decision-Tree Analysis, Investment Projects Should Be Discontinued When

question 112

Multiple Choice

According to decision-tree analysis, investment projects should be discontinued when:

• A)The probability of success is less than 50 percent
• B)NPV is calculated to be negative
• C)DOL increases from previous levels
• D)The possibility of a failing outcome exists

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Definitions:

Reflection

The process of intentionally thinking about one's actions, experiences, beliefs, and values to gain insights or learning.

Expectancy-value Theory

A psychological theory that explains behavior as driven by the belief that one's effort will lead to desired outcomes and the value of those outcomes to the individual.

Goal

denotes an objective or desired outcome that a person or a system aims to achieve.

Effort

The amount of physical or mental energy expended to achieve a goal or perform a task.