Theoretically,the NPV Is the Most Appropriate Method to Determine the Acceptability

question 64

Multiple Choice

Theoretically,the NPV is the most appropriate method to determine the acceptability of a project.A false sense of security can overcome the decision-maker when the procedure is applied properly but the positive NPV results are accepted blindly.Sensitivity and scenario analysis aid in the process by:

• A)providing assurance that the most appropriate discount rate is being applied.
• B)ensuring all estimated values are accurate.
• C)ensuring the NPV value was calculated correctly.
• D)providing information on a number of potential outcomes.
• E)guaranteeing the NPV will be achieved.

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Definitions:

Divorce

The act of legally ending a marriage by the decision of a court or an appropriate entity.

Second Marriages

Marriages in which at least one of the partners has been married before; these often involve blending families and navigating past relationship lessons.

Additional Sources

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Stress

A state of mental or emotional strain resulting from adverse or demanding circumstances, often affecting physical health.