The NPV computed using static DCF analysis is _________ if the project gives us the opportunity to invest additional funds if things go well; that is, it includes an option to expand.

A) Understated.
B) Overstated.
C) Accurately stated even.
D) Not conservative enough.
E) Useless.

Acme Fastener and Tool is having major problems with demand management. The VP of Sales is very focused on increasing productivity according to forecasts, but the operations manager routinely presents obstacles to increasing production above current levels. Of the following, which problem is the firm experiencing?

A) Focus on tactics
B) Lack of attention on operational planning
C) Overemphasis on forecasting
D) Functional silos

Provide a graphical representation of the volatility of two stocks that are not correlated.

Many attempts to correlate reported attitude toward something with actual behaviour have found:

A) people cannot be trusted.
B) saying something and actually doing can be very different.
C) when people say something, they generally do it.
D) there is a high correlation between the two.