If a Decision Tree Indicates an Expected NPV of $1

question 81

Multiple Choice

If a decision tree indicates an expected NPV of $1 million, then:

• A) at least one of the outcomes had a negative NPV.
• B) all of the outcomes had a positive NPV.
• C) $1 million is the firm's minimum guaranteed profit.
• D)the project still contains uncertainty.

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Definitions:

Basic Forms

The fundamental shapes or structures from which something can be developed or understood.

Combinations

The act or process of combining two or more elements or entities to form a new, often more complex, total.

Geographic Departmentation

Organizing an entity's structures based on geographical locations, facilitating regional management.

World Headquarters

The main office or central hub of an organization from which global operations are directed or managed.