Personal Preferences for Cash Flow Should Not Affect the Decision-Making

question 92

True/False

Personal preferences for cash flow should not affect the decision-making process. A manager should decide based on always maximising the net present value (NPV).

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Definitions:

Optimal Level

The most efficient, effective, or desirable point or degree for a specific outcome.

Pollution

The contamination of natural environments by harmful substances or activities.

Environment Clean-up

The process of removing pollutants or contaminants from environmental media such as soil, groundwater, sediment, or surface water for the general protection and enhancement of the environment.

Negative Externality

A situation where the production or consumption of a good or service results in a harmful effect on unrelated third parties.