The Net Present Value, Profitability Index, Internal Rate of Return

question 7

True/False

The net present value, profitability index, internal rate of return, and modified internal rate of return methods will provide consistent investment decisions for independent projects with normal cash flows.

---

Definitions:

Closed-shop

A form of union security agreement where the employer agrees to hire union members only, and employees must remain members of the union at all times.

Agency-shop

A workplace where employees are not required to join the union, but all employees must pay union dues as the union negotiates on behalf of both members and non-members.

Right-to-work Laws

Legislation that prohibits labor agreements from requiring workers to join a union as a condition of employment, aiming to ensure freedom of choice for employees.

Geographic Immobility

A situation where individuals or factors of production are unable to move freely from one location to another, often leading to inefficiencies in labor markets.