Which of the Following Capital Budgeting Proposals Is Most Likely

question 71

Multiple Choice

Which of the following capital budgeting proposals is most likely to display a conflict of interests?

• A) The proposal with the highest NPV
• B) The proposal with the longest payback period
• C) The proposal with the highest IRR and quickest payback
• D) The proposal to solve pollution problems cited by the EPA

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Definitions:

Cognitive-behavioral

Pertaining to a type of psychotherapy that combines cognitive and behavioral techniques to change patterns of thinking or behavior that are causing people's problems.

Psychodynamic

A psychological approach focusing on the in-depth examination of the mental factors governing human actions, sensations, and feelings, particularly in relation to experiences encountered early in life.

Sociocultural

Pertaining to the interplay of social and cultural factors and their influence on individual behaviors, thoughts, and feelings.

Biological

Pertaining to the science of life and living organisms.