Which of the Following Statements Is CORRECT

question 22

Multiple Choice

Which of the following statements is CORRECT?

• A) An example of an externality is a situation where a bank opens a new office, and that new office causes deposits in the bank's other offices to increase.
• B) The NPV method automatically deals correctly with externalities, even if the externalities are not specifically identified, but the IRR method does not.This is another reason to favor the NPV.
• C) Both the NPV and IRR methods deal correctly with externalities, even if the externalities are not specifically identified.However, the payback method does not.
• D) Identifying an externality can never lead to an increase in the calculated NPV.
• E) An externality is a situation where a project would have an adverse effect on some other part of the firm's overall operations.If the project would have a favorable effect on other operations, then this is not an externality.

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Definitions:

Formula Selling Presentation

A structured sales approach that follows a predetermined script or formula, aiming to cover all relevant points and overcome potential objections systematically.

Need-satisfaction Presentation

A sales approach that focuses on identifying and meeting the specific needs of a potential customer.

Stimulus-response Presentation

A technique in marketing and psychology where a stimulus is presented to elicit a specific response from the target audience.

Need-satisfaction Format

A sales approach focused on identifying and fulfilling the needs and desires of potential customers.