Project Evaluation from the ________ Viewpoint Serves Some Useful Purposes

question 43

Multiple Choice

Project evaluation from the ________ viewpoint serves some useful purposes and/but should ________ the ________ viewpoint.

• A) local; be subordinated to; parent's
• B) local; not be subordinated to; parent's
• C) parent's; be subordinated to; local
• D) none of the above

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Definitions:

Discounting Approach

A financial strategy that determines the present value of future cash flows by applying a discount rate.

Discount Rate

It’s the interest rate used in the process of discounted cash flow analysis to evaluate the present value of anticipated future cash flows.

Required Return

The basic annual percent yield needed to appeal to individuals or businesses for investment in a specific project or security.

Cash Flows

The gross flow of cash and assets equivalent to cash moving into and away from a business operation.