Quiz Ch 12 – T/F Handling Unquantifiable Externalities in Project Analysis
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: If a firm’s CFO believes that an unquantifiable externality exists within a project, where estimates of its impact are essentially speculative, it is advisable to disregard the externality. This prevents the analysis from appearing artificially precise.