A Financial Manager Who Does Not Follow the General Constraints

question 2

Multiple Choice

A financial manager who does not follow the general constraints of the NPV rule may:

• A) accept a negative project for fear of losing an investment opportunity.
• B) accept a marginally acceptable NPV project limiting the corporation's ability to choose a competing project.
• C) option the project to another firm.
• D) not take a positive NPV project even if the NPV is adequate reward to forego the option.

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Definitions:

Marketing Strategy

An organization's comprehensive plan formulated for effectively promoting and selling its products or services, aiming to achieve a sustained competitive advantage.

Target Markets

Specific groups of potential consumers towards whom a company directs its marketing efforts and strategies.

Personal Care Products

Consumer products used in personal hygiene and for beautification, including items such as cosmetics, soaps, and hair care products.

Customer Loyalty

The dedication and continued patronage of a company's products or services by its customers, often manifested through repeat purchases.