Which of the Following Is an Example of a Non

question 106

Multiple Choice

Which of the following is an example of a non financial consideration in capital budgeting?

• A) Will an investment generate adequate cash flows to promptly recover its cost?
• B) Will an investment generate an acceptable rate of return?
• C) Will an investment have a positive net present value?
• D) Will an investment have an adverse effect on the environment?

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Definitions:

Unethical Process

Actions or procedures that go against moral principles and do not conform to ethical standards.

Inflate Profits

The act of artificially increasing a company's profit figures through deceptive or unethical accounting practices.

Moral Intensity

The degree to which an issue demands the application of ethical principles based on its potential impact.

Saliency

The quality of being particularly noticeable or important; standing out from the background or context.