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Author Question: Jessie, the regional manager of a large electronics firm, is trying to determine whether a new ... (Read 86 times)

jasdeep_brar

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on: Jul 14, 2018
Jessie, the regional manager of a large electronics firm, is trying to determine whether a new warehouse is a good investment. After discussing with her firm's financial managers, she concludes that the project carries a negative NPV (Net Present Value). What should Jessie do and why?
 A) She should invest in the warehouse to increase profits since a negative NPV indicates that the firm needs to generate more funds to stay afloat.
  B) She should not invest in the warehouse since a negative NPV means that the present value of the future cash flows does not justify the cost of the warehouse.
  C) She should invest in the warehouse since a negative NPV means that the cost of financing the warehouse is within the company's budget for expenses.
  D) She should not invest in the warehouse since a negative NPV means that the firm cannot afford the investment.

Question 2

All not-for-profit corporations rely solely on volunteers to perform services of the organization.
 
 Indicate whether the statement is true or false


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Perkypinki

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Reply #1 on: Jul 14, 2018
Answer to Question 1

B

Answer to Question 2

False


jasdeep_brar

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Reply 2 on: Jul 14, 2018
Great answer, keep it coming :)

alvinum

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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