NO.PZ2023090506000005
问题如下:
What type of capital allocation project will most likely be implemented even if it has a negative estimated NPV?
选项:
A.New lines of business and other
Expansion of existing business
Regulatory or compliance
解释:
C is correct. Regulatory compliance projects are required by third parties, such as government regulatory bodies, to meet rules and standards and to avoid fines or other legal consequences.
A and B are incorrect because new lines of business and other as well as expansion of existing business projects are done at management’s discretion and would generally not be pursued if they were estimated to have a negative NPV.