In Evaluating Capital Projects, the Decisions Using the NPV Method

question 87

Multiple Choice

In evaluating capital projects, the decisions using the NPV method and the IRR method may disagree if

• A) the projects are independent.
• B) the cash flows pattern is unconventional.
• C) the projects are mutually exclusive.
• D) both b and c.

---

Definitions:

FMOT

First Moment of Truth; a marketing concept referring to the first time a consumer encounters a product and forms an impression.

Sustainability

The principle of meeting current needs without compromising the ability of future generations to meet their own, often focusing on environmental, economic, and social balance.

Reciprocity

The practice of exchanging things with others for mutual benefit, especially privileges granted by one country or organization to another.

Transparency

The practice of being open, honest, and straightforward about various aspects of a company's operations, policies, and decisions.