When considering two mutually exclusive projects, the financial manager should always select the project whose internal rate of return is the highest, provided the projects have the same initial cost.
Answer the following statement true (T) or false (F)
False
When evaluating mutually exclusive projects, especially those that differ in scale or timing, the NPV method should be used to determine which project should be undertaken. See 9-3: Comparison of the NPV and IRR Methods
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All companies desire a low return on total assets.
Answer the following statement true (T) or false (F)
In strict liability, if a company sells a beverage in a can that has sharp edges and injures several consumers, it will be held liable even if it didn't know about the problem
a. True b. False Indicate whether the statement is true or false
Calvin laid off two of his employees this morning, and he is scheduled to lay off another employee within an hour. In reflecting on what went well or did not go well during the earlier termination interviews, Calvin realized he did everything correctly, EXCEPT he
A. completed the termination interviews within 15 minutes. B. allowed time for debate. C. had a human resources representative present as a witness. D. expressed appreciation for what the employees had contributed. E. provided written explanations of severance benefits.
Risk in a revenue-producing project can best be adjusted for by:?
A. ?ignoring it. B. ?adjusting the discount rate upward for increasing risk. C. ?adjusting the discount rate downward for increasing risk. D. ?Picking a risk factor equal to the average discount rate. E. ?reducing the NPV by 10 percent for risky projects.