Reference no: EM131492688
1. When making pricing decisions:
a. Companies should weigh customers, competitors, and costs differently
b. Companies should weigh customers, competitors, and costs equally
c. Managers must consider competitors actions both nationally and internationally
d. Managers must consider competitors actions nationally
2. A firm is deciding between different investment alternatives.
If the present value of future cash inflows exceeds the present value of future cash outflows:
a. The firm should reject the project with the largest NPV and accept any with negative NPV
b. The firm should accept the project with the largest NPV
c. The firm should accept the project with the largest NPV and reject any with negative NPV
d. The firm should reject the project with the largest NPV
3. Comparing estimates of capital budgeting projects to actual results provides all of the following benefits EXCEPT:
a. Identify which estimates were wrong to correct in future
b. Reward good planning
c. Remove temptation to inflate estimates and benefits
d. Improve company culture
Stock basis of zero at the beginning of the year
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