Which One of the Following Statements Would Generally Be Considered

question 66

Multiple Choice

 Which one of the following statements would generally be considered as accurate given independent projects with conventional cash flows?

• A) The internal rate of return decision may contradict the net present value decision. 
• B) Business practice dictates that independent projects should have three distinct accept indicators before a project is actually implemented. 
• C) The payback decision rule could override the net present value decision rule should cash availability be limited. 
• D) The profitability index rule cannot be applied in this situation. 
• E) The projects cannot be accepted unless the average accounting return decision ruling is positive. 

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Definitions:

Zero-Sum Game

A situation in economics or game theory where one party's gain is precisely balanced by another party's loss.

Dominant Strategy

In game theory, a strategy that is best for a player regardless of the strategies chosen by the other players.

Payoff

The return or profit from an investment or action.

Alternative Option

A different choice or course of action that is available to individuals or organizations.