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.

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Definitions:

Passiveness

Exhibiting or characterized by submission or lack of participation; a tendency to be inactive or to not react in situations.

Assertive

Characterized by confidence and self-assurance in stating opinions or claims, often in a respectful and non-confrontational manner.

Firm

describes a solid or hard texture, not easily pressed into.

Respect

The act of valuing and considering the feelings, wishes, rights, or traditions of others.