If There Is a Conflict Between Mutually Exclusive Projects Due

question 40

Multiple Choice

If there is a conflict between mutually exclusive projects due to the IRR, one should:

• A)drop the two projects immediately.
• B)spend more money on gathering information.
• C)depend on the NPV as it will always provide the most value.
• D)depend on the payback because it does not suffer from these same problems.
• E)None of the above.

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Definitions:

Prima Facie

A Latin term meaning "at first sight" or "on its face," referring to evidence that, unless rebutted, is sufficient to prove a particular proposition or fact.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances.

Reasonable Standard Of Care

The degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances.

Societal Need

Essential requirements that are necessary for the well-being and functioning of society as a whole.