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:

Oral Stage

A psychoanalytic concept introduced by Freud, referring to the first stage of human psychosexual development during which pleasure is centered in the mouth area, from birth to about 18 months.

Phallic Stage

A stage in Freudian psychosexual development, occurring roughly between the ages of 3 and 6, where the libido's focus is on the genital area.

Genital Stage

The final stage in Freud's psychosexual development theory, occurring from puberty onwards, centered around mature sexual intimacy and genital pleasure.

Legal Protection

Measures and policies in place to safeguard individuals, organizations, or properties against legal action or harm.