Which of the Following Statements Is Correct

question 46

Multiple Choice

Which of the following statements is correct?

• A)If a project can create employment in a slump area, the firm should include such an externality in the NPV calculations.
• B)If cannibalization exists, then the cash flows associated with the project must be increased to offset these effects. Otherwise, the calculated NPV will be biased downward.
• C)If cannibalization is determined to exist, then this means that the calculated NPV considering cannibalization will be higher than the NPV that does not recognize these effects.
• D)Cannibalization is a type of externality that is not against the law, and any harm it causes is done to the firm itself.

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Definitions:

Self-recognition

The cognitive ability to recognize oneself in a mirror or photograph, often considered a milestone in self-awareness and identity development.

Categorical Self

A classification of the self children use to guide their behavior; based on broad ways in which people differ, such as sex, age, and physical characteristics.

Mirror

An object with a reflective surface that forms an image of whatever stands before it, commonly used for personal grooming or decorative purposes.

Complex Emotions

Emotions that are more nuanced and involve a combination of basic emotions, such as pride, guilt, or embarrassment.