Question: When evaluating a project associated with an explicitly social outcome (such as those undertaken by not-for-profit organizations) we should: 1 a. Invest in a negative
When evaluating a project associated with an explicitly social outcome (such as those undertaken by not-for-profit organizations) we should: 1 a. Invest in a negative NPV project only if the discounted sum of future social benefits exceeds the economic loss. b. Always compute the IRR based on discounted future cash flows c. Favour projects with the longest payback period d. Only consider the social benefits and costs which might be generated e. Never conduct a sensitivity analysis
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