Thinking in Terms of the Goal of Wealth Maximization,a Project

question 24

Multiple Choice

Thinking in terms of the goal of wealth maximization,a project breaks even for shareholders,meaning that it neither creates nor destroys value,if ________.

• A)its NPV equals 0
• B)its IRR equals 0
• C)its net profit after taxes equals 0
• D)its payback period is one year or less

---

Definitions:

Policy Price

The price set by government policy, often used in the context of agricultural products or utilities.

Government Policy

A plan of action or a set of decisions made by a government to guide public actions in a specific field or achieve certain goals.

Price Range

The spread between the highest and lowest selling price of a good or service in a particular market over a given period.

Government Payment

Funds disbursed by the government to individuals, businesses, or other government bodies, often as part of a policy or program.