Investment Decisions Based on Net Present Value-Multiple Choice Question

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Question

Indicate as to whether the following statements are correct (yes) or incorrect (no):

Reject-project even if NPV>0:    if the value of the additional negative-factors (real-obligations, negative-externalities, negative-extralities, taxation, pollution-penalties, public bad-will due to environment-damaging production techniques) exceeds the positive-NPV.

a) True b) False

 

 

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