Which of the following is a disadvantage of the Net Present Value rule?
A) can be misleading if inflows come before outflows
B) not necessarily consistent with maximizing shareholder wealth
C) ignores cash flows after the cutoff point
D) relies on accurate estimate of the discount rate
Answer: D
You might also like to view...
_______________ is the transmission of information and meaning from a sender to a receiver
Fill in the blank(s) with correct word
Which of the following statements about market risk and firm-specific risk is true?
A. Market risk is an unsystematic risk, whereas firm-specific risk is systematic risk. B. Investors are not rewarded for taking market risk, whereas they are rewarded for taking firm-specific risk. C. Market risk is a diversifiable risk, whereas firm-specific risk is a nondiversifiable risk. D. Market risk is the relevant risk, whereas firm-specific risk is an irrelevant risk. E. Market risk includes a firm's default risk, whereas firm-specific risk includes economic risk.
A product backlog is the final list of what is needed to complete the project
Indicate whether the statement is true or false
United Airlines began offering sales on flights to South America and Europe. It started promoting these lower-cost flights heavily on television and in print. Not to be outdone, Delta Airlines started offering its own sales at prices even lower than United Airlines. This refutes which of the following criticisms of promotion?
A. Promotion loses money for businesses. B. Promotion facilitates price competition. C. Promotion is deceptive. D. Promotion increases prices. E. Promotion creates needs.