The NPV of an Investment Proposal Becomes Negative Solely as a Result

question 103

Multiple Choice

The NPV of an investment proposal becomes negative solely as a result of allocating a portion of the corporation president's salary.It is most likely the case that:

• A) the project should be accepted.
• B) rejecting the project is the correct decision.
• C) the allocation should be postponed until the project is accepted.
• D) the salary should be considered an opportunity cost of the project.

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Definitions:

Vicarious Reinforcement

Learning that occurs by observing the rewards or punishments that another individual receives, influencing the observer's behavior.

Cognitive Maps

Mental representations of physical locations that help individuals navigate the spatial environment.

Fixed-Interval Reinforcement

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed, used in behavioral psychology.

Positive Punishments

A form of behavior modification that involves adding an unpleasant stimulus to decrease a behavior.