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

question 72

Multiple Choice

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

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

---

Definitions:

Possession

The state or fact of owning or having control over something, either physically or legally.

Full Payment

The complete settlement of an amount due, leaving no balance.

Assignment

The transfer of a debtor’s property to an Official Receiver under a voluntary assignment in bankruptcy.

Amount Owing

The total sum of money that is due or payable to another party.