Sometimes Analysts Think That an Externality Is Present in a Project,but

question 74

True/False

Sometimes analysts think that an externality is present in a project,but they recognize that the particular externality cannot be quantified with any precision-estimates of its effect would really just be guesses.In such a situation,the externality should be ignored,i.e.,not considered at all,because if it were considered,it would make the analysis appear more precise than it actually is.

---

Definitions:

Market Price

The amount at which an asset is bought or sold in the market.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including those held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the total market value remains the same.

Market Price

The rate currently set for the trade of assets or services in the marketplace.