Which of the Following Reasons Is NOT a Valid Explanation

question 80

Multiple Choice

Which of the following reasons is NOT a valid explanation of why managers sometimes choose to take on negative-NPV Projects:

• A) The NPV analysis does not include a valuable real option to expand the project if things go well.
• B) If the firm has debt, managers may create value for shareholders by taking on some risky negative-NPV projects.
• C) Managers' payoff functions represent the payoffs of lenders. By taking negative-NPV projects, the managers can create value for lenders.
• D) All of the above descriptions are valid explanations for why managers sometimes take on negative NPV projects.

Understand the objectives and impacts of regional trade agreements such as NAFTA and CAFTA.

Understand the role of open workspace arrangements in facilitating informal communication among employees.

Recognize effective strategies for combating negative rumors and promoting healthy communication within organizations.

Identify the impacts of electronic communication devices on the separation between work and personal life.

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Definitions:

Bisexual

Pertaining to a sexual orientation towards both males and females.

Homosexual

A term describing individuals who are emotionally, romantically, or sexually attracted to members of the same sex.

Sexual Fantasies

Imaginative thoughts or daydreams about sexual activities or desires.

Admit

To confess or acknowledge something, often reluctantly, or to allow someone to enter a place.