This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following statements best describes externalities? (Read 74 times)

jojoperlo_

  • Full Member
  • ***
  • Posts: 152
on: Aug 7, 2023
Which of the following statements best describes externalities?

◦

An externality is a situation where a project would have an adverse effect on some other part of the firm or on the environment. If the project would have a favourable effect on other operations, then this is not an externality.


◦

The NPV method automatically deals correctly with externalities, even if the externalities are not specifically identified, but the IRR method does not. This is another reason to favour the NPV.


◦

An example of an externality is a situation where a bank opens a new office, and that new office causes deposits in the bank’s other offices to decline.


◦

Identifying an externality can never lead to an increase in the calculated NPV.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jojoperlo_ on Aug 7, 2023

zubair1583

  • Full Member
  • ***
  • Posts: 175
Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


jojoperlo_

  • Member
  • Posts: 152
Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

Hdosisshsbshs

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Ratings of Perceived Contradictions in Political Statements Ratings of Perceived Contradictions in Political Statements
Examples of Mission Statements Examples of Mission Statements
A dose-response curve describes the relationship between the quantity of the chemical entering the ... A dose-response curve describes the relationship between the quantity of the chemical entering the ...
How to convert verbal statements into algebraic equations (Part 1) How to convert verbal statements into algebraic equations (Part 1)
How to convert verbal statements into algebraic equations (Part 2) How to convert verbal statements into algebraic equations (Part 2)
How to convert verbal statements into algebraic equations (Part 4) How to convert verbal statements into algebraic equations (Part 4)
Video: T cell receptors

For a complete list of videos, visit our video library