A Firm May Be Unable to Accept All Projects That

question 3

Multiple Choice

A firm may be unable to accept all projects that are expected to have positive NPVs due to:

• A) the lack of funds
• B) the lack of trained and reliable personnel
• C) conflicting decisions by the IRR method
• D) both (a)and (b)are true
• E) All of the above are true

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Definitions:

Voluntary Deductions

These are payroll deductions that an employee chooses to have withheld from their paycheck, such as for retirement plans, health insurance, or union dues.

Health Insurance

Health insurance is a form of insurance coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Retirement Plan

A financial arrangement designed to replace employment income upon retirement, often including contributions from both the employer and employee.

Federal Income Taxes

Taxes levied by the federal government on the annual income of individuals, corporations, trusts, and other legal entities.