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Discuss some of the potential problems of merit pay plans.
Arbitrary Value
An arbitrary value is a value assigned based on discretion or judgment rather than from an objective calculation or measurement.
Project Measurement
The process of quantifying the performance and progress of a project against predefined benchmarks.
Internal Rate of Return
A financial metric used to evaluate the profitability of potential investments, representing the annual return rate that makes the net present value of cash flows from a potential investment equal to zero.
Capital Budgeting
The process businesses use to evaluate and select long-term investments that are expected to yield the most beneficial returns.
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