A Financial Manager Who Does Not Follow the General Constraints

question 15

Multiple Choice

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

• A)accept a negative NPV 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)not consider all options available in a capital budgeting decision.
• D)not take a positive NPV project even if the NPV is adequate reward to forego the option.
• E)All of the above.

---

Definitions:

Agricultural Revolution

denotes a period of significant agricultural development and innovation, leading to increased productivity and societal transformation.

Industrial Revolution

A period of significant industrial growth and technological innovation, beginning in the late 18th century, that transformed primarily agrarian societies into industrial ones.

Postindustrial Revolution

The postindustrial revolution describes the shift from manufacturing-based economies to ones primarily focused on services, information, and technology, signaling changes in workforce demands and economic structures.

Social Barriers

Obstacles that exist within societies which prevent individuals or groups from achieving equal status or access to resources and opportunities.