If in Evaluating a Proposal by Use of the Net

question 24

True/False

If in evaluating a proposal by use of the net present value method there is a deficiency of the present value of future cash inflows over the amount to be invested, the proposal should be accepted.

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Definitions:

Diffusion of Responsibility

A phenomenon where individuals are less likely to take action or feel a sense of responsibility when others are present.

Bystander Effect

The situation wherein people are less inclined to assist someone in need when there are others around.

Social Exchange Theory

A hypothesis positing that actions within a society stem from a transactional process designed to optimize advantages while reducing disadvantages.

Bystander Effect

A social psychological phenomenon where individuals are less likely to offer help to a person in need when other people are present.