Theoretically,the NPV Is the Most Appropriate Method to Determine the Acceptability

question 91

Multiple Choice

Theoretically,the NPV is the most appropriate method to determine the acceptability of a project.A false sense of security can overwhelm the decision-maker when the procedure is applied properly and the positive NPV results are accepted blindly.Sensitivity and scenario analysis aid in the process by:

• A)changing the underlying assumptions on which the decision is based.
• B)highlighting the areas where more and better data are needed.
• C)providing a picture of how an event can affect the calculations.
• D)All of the above.
• E)None of the above.

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Definitions:

Displacement

A psychological defense mechanism where an individual redirects emotional responses from their original source to another target.

Compensation

All forms of financial returns and tangible benefits that employees receive as part of an employment relationship.

Reaction Formation

A psychological defense mechanism where an individual unconsciously replaces their true feelings with the opposite.

Work Engagement

A positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and absorption.