When Evaluating a New Project,the Firm Should Consider All of the Following

question 88

Multiple Choice

When evaluating a new project,the firm should consider all of the following factors except:

• A) Changes in working capital attributable to the project.
• B) Previous expenditures associated with a market test to determine the feasibility of the project,if the expenditures have been expensed for tax purposes.
• C) The current market value of any equipment to be replaced.
• D) The resulting difference in depreciation expense if the project involves replacement.
• E) All of the above should be considered.

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Definitions:

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is associated with an unconditioned stimulus.

Reinforcement

In behavioral psychology, it refers to any stimulus which strengthens or increases the probability of a specific response.

Positive Reinforcer

A stimulus that, when presented after a behavior, increases the likelihood of that behavior being repeated.

Negative Reinforcer

A stimulus whose removal or avoidance after a response strengthens that response or makes it more likely to happen again.