Which of the Following Is True of Project Evaluations Based

question 11

Multiple Choice

Which of the following is true of project evaluations based on the NPV method?

• A)It is flawed as it does not account for the time value of money.
• B)For mutually exclusive projects,the project with the highest positive NPV should be accepted.
• C)The market value of a project?s tracking portfolio should be more than the discounted value of all present and future cash flows of the accepted project.
• D)It is flawed as it does consider working capital requirements.

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Definitions:

Imprinting

A rapid learning process that occurs in some animals in a limited time period after birth, leading to recognition and attraction to a particular stimulus or individual.

Conservation

Conservation involves the protection, preservation, management, or restoration of natural environments, ecosystems, vegetation, and wildlife to prevent exploitation and degradation.

Egocentrism

A cognitive stance involving seeing the world solely from one’s own perspective and having difficulty recognizing other viewpoints.

Basic Trust

A foundational sense of confidence in the predictability and reliability of the world, often established in early childhood.