Which One of These Statements Is Correct

question 21

Multiple Choice

Which one of these statements is correct?

• A)Monte Carlo simulations are now used by the vast majority of firms.
• B)Including the option to wait into the analysis will increase the net present value of any project.
• C)Financial managers prefer accounting profit break-even analysis over financial break-even analysis.
• D)The option to expand may increase,decrease,or not affect the final net present value of a project.
• E)Monte Carlo simulation may not be worthwhile for small dollar,low-risk projects.

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Definitions:

Norms

Are rules or standards for the behavior of group members.

Normative Theory

A theoretical framework that prescribes how things should or ought to be, often used in ethical, political, or policy debates.

Ethical Problems

Dilemmas or situations that require a choice between options that are or appear to be, ethically wrong or right.

Leading

Leading creates enthusiasm to work hard to accomplish tasks successfully.