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A Financial Manager Who Consistently Underestimates the ___________ Will Tend

Question 376

Multiple Choice

A financial manager who consistently underestimates the ___________ will tend to incorrectly reject projects that would actually create wealth for the stockholders.


A) Marginal income tax rate.
B) Initial cost of projects.
C) Future cash outlays associated with projects.
D) Required return on projects.
E) Future cash inflows associated with projects.

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