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A Financial Manager Who Does Not Follow the General Constraints

Question 1

Multiple Choice

A financial manager who does not follow the general constraints of the NPV rule may:


A) accept a negative project for fear of losing an investment opportunity.
B) accept a marginally acceptable NPV project limiting the corporation's ability to choose a competing project.
C) option the project to another firm.
D) not take a positive NPV project even if the NPV is adequate reward to forego the option.

Correct Answer:

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