What are the consequences of excessive optimism or pessimism in forecasting expected project cash flows?
What will be an ideal response?
Answer: Optimistic biases can lead to accepting projects that fall short of expectations and reduce the value of the firm. Excessive pessimism will lead to the rejection of projects, especially risky projects, that might have large NPV's and add substantial value to the business.
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________ occurs when computer criminals invade a computer system and replace legitimate programs with their own, unauthorized ones that shut down legitimate applications
A) Encryption B) Spoofing C) Phishing D) Usurpation
Which of the following statements is true of personal information systems?
A) Personal information systems that support a particular department are called workgroup information systems. B) Adapting to changes in personal information systems is extremely difficult and time consuming. C) Personal information systems have a single user only, and so the procedures are probably not documented or formalized. D) The solutions to problems in a personal information system usually involve more than one department.