Assume a Project Currently Has a Negative Net Present Value

question 10

Multiple Choice

Assume a project currently has a negative net present value.Which one of these expectations would indicate that the timing option for that project may have a positive value?

• A)The life of the project's product is expected to decrease each year.
• B)Competition in the project's product market is on the increase.
• C)The demand for the project's product is expected to decrease within 6 months.
• D)The project's cash flow projections are expected to remain constant over time.
• E)The contribution margin for the project is expected to improve next year.

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Definitions:

Structured

Characterized by specific rules, patterns, or organized framework.

Narcissistic

A personality trait characterized by an excessive preoccupation with self-image and an exaggerated sense of importance and entitlement.

Obsessive-Compulsive

A condition characterized by uncontrollable, recurring thoughts (obsessions) and behaviors (compulsions) that an individual feels the urge to repeat over and over.

Paranoid

Characterized by excessive suspicion and distrust of others without adequate justification.