An Independent Project Should Be Accepted If It

question 70

Multiple Choice

An independent project should be accepted if it

• A) produces a net present value that is greater than or equal to zero.
• B) produces a net present value that is greater than the equivalent IRR.
• C) has only one sign reversal.
• D) produces a profitability index greater than or equal to zero.

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Definitions:

Quality Loss Function

A mathematical formula that quantifies the cost associated with producing items that deviate from target specifications, introduced by Genichi Taguchi.

Pareto Diagram

A graphical representation that displays the relative importance of differences within a set of data, usually to identify which factors are the most significant.

Cause-and-Effect Diagram

A visual tool that helps identify, sort, and display possible causes of a specific problem or quality characteristic.

Cafeteria Dissatisfaction

Reflects displeasure or unhappiness with the services, food quality, or overall experience of dining in a cafeteria setting.