Which One of the Following Capital Budgeting Proposals Is Most

question 43

Multiple Choice

Which one of the following capital budgeting proposals is most apt to be associated with 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:

Wage Subsidies

Financial incentives provided by governments to employers to encourage the hiring of certain groups of people, reducing unemployment.

Tariffs

Taxes imposed by a government on imported goods to protect domestic industries or to raise revenue.

Direct Welfare

Governmental assistance provided directly to individuals in the form of cash payments or services, aimed at improving the living conditions of the economically disadvantaged.

National Defense

The governmental actions, policies, and military measures taken to protect a country from external threats and ensure national security.