Which of the Following Is Not a Rationale for Using

question 103

Multiple Choice

Which of the following is not a rationale for using the NPV method in capital budgeting?

• A) An NPV of zero signifies that the project's cash flows are just sufficient to repay the invested capital and to provide the required rate of return on that capital.
• B) A project whose NPV is positive will increase the value of the firm if that project is accepted.
• C) A project is considered acceptable if it has a positive NPV.
• D) A project is not considered acceptable if it has a negative NPV.
• E) All of the above are true.

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Definitions:

Adaptive

refers to the ability or capacity to adjust, modify, or change in response to alterations in the environment or circumstances.

Supportive

Pertaining to actions or behaviors that provide encouragement, assistance, or comfort to others, often aiming to alleviate stress or improve well-being.

Transformational

Pertaining to leadership or change that involves a profound or radical change, often inspiring followers to exceed their own interests for the sake of the larger community or organization.

Entrepreneurial Leadership

A leadership style that combines aspects of entrepreneurship such as innovation, risk-taking, and proactiveness with traditional leadership skills to guide a business towards growth.