In a Decision Tree, the NPV to Make the Yes/no

question 54

Multiple Choice

In a decision tree, the NPV to make the yes/no decision is dependent on:

• A)only the cash flows from successful path.
• B)on the path where the probabilities add up to one.
• C)all cash flows and probabilities.
• D)only the cash flows and probabilities of the successful path.
• E)None of the above.

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Definitions:

Exclusive Right

A privilege or license granted to an individual or entity to be the sole provider or beneficiary of a particular service or product.

North America

A continent located entirely in the Northern Hemisphere and almost entirely within the Western Hemisphere; it includes countries such as Canada, the United States, and Mexico.

Registered Design

A legal protection granted to the visual design of objects to prevent unauthorized copying or imitation.

Industrial Process

A structured set of activities related to the manufacture, processing, or treatment of various materials or products on a large scale.