Which of the Following Statements Is Correct

question 46

Multiple Choice

Which of the following statements is correct?

• A)If a project can create employment in a slump area, the firm should include such an externality in the NPV calculations.
• B)If cannibalization exists, then the cash flows associated with the project must be increased to offset these effects. Otherwise, the calculated NPV will be biased downward.
• C)If cannibalization is determined to exist, then this means that the calculated NPV considering cannibalization will be higher than the NPV that does not recognize these effects.
• D)Cannibalization is a type of externality that is not against the law, and any harm it causes is done to the firm itself.

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Definitions:

Native Context

The original environment or setting in which something exists or occurs, often used in computing and linguistics.

Location-Related Competencies

The unique skills, technologies, or capabilities that a company develops based on its geographical location, contributing to its competitive advantage.

Global Career Tracks

Career pathways that offer opportunities for professional growth and development across different countries and cultures.

Loci of Control

A psychological concept referring to individuals’ beliefs about the extent to which their actions can influence their environment and outcomes.