Which of the Following Statements Is False

question 51

Multiple Choice

Which of the following statements is false?

• A) Traditionally, managers have used the equivalent annual benefit method to choose between projects of different lives.
• B) The equivalent annual benefit method ignores the value of any real options because it assumes that the projects will always be replaced at their original terms.
• C) If the future costs (or benefits) are certain with mutually exclusive projects, then we must use a real options approach to determine the correct decision.
• D) The equivalent annual benefit method accounts for the difference in project lengths by calculating the constant payment over the life of the project that is equivalent to receiving the NPV today and then selecting the project with the higher equivalent annual benefit.

Appreciate the significance of clear performance targets and their alignment with organizational goals.

Recognize the influence of external factors such as tax rates and legislation on compensation strategies.

Identify strategies for gaining employee support and overcoming resistance to performance-based pay plans.

Understand the factors leading to job losses in various sectors in the United States.

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Definitions:

Deviance

A behavior, trait, belief, or other characteristic that violates a norm and causes a negative reaction.

Sanction

Official permissions or penalties for actions, often used in the context of international relations to enforce laws or regulations.

Amish

A group of traditionalist Christian church fellowships known for simple living, plain dress, and reluctance to adopt many conveniences of modern technology.

Branding

The marketing practice of creating a distinctive name, symbol, or design that identifies and differentiates a product, service, or entity from others in the market.