Which of the Following Statements Is Correct

question 58

Multiple Choice

Which of the following statements is correct?

• A) When making an investment decision, take the alternative with the positive NPV. Choosing this alternative is equivalent to receiving its NPV in cash today.
• B) When making an investment decision, take the alternative with the negative NPV. Choosing this alternative is equivalent to receiving its NPV in cash today.
• C) When making an investment decision, take the alternative with the highest NPV. Choosing this alternative is equivalent to receiving its NPV in cash today.
• D) When making an investment decision, take the alternative with the lowest NPV. Choosing this alternative is equivalent to receiving its NPV in cash today.

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Definitions:

Steering Control

A mechanism in vehicles and machinery designed to guide or direct movement in a desired direction.

Feedforward Control

A type of control that focuses on the regulation of inputs (resources, materials, etc.) to prevent future problems.

Feedback Control

A management process involving the collection and analysis of information about a completed activity, then using that information to adjust future actions and improve performance.

Feedback Control

A process wherein adjustments are made based on the differences between the actual outcome and the desired performance.