The First Step Managers Use to Make Sense of Their

question 6

Multiple Choice

The first step managers use to make sense of their changing environments is:

• A) environmental scanning
• B) perceptual re-engagement
• C) modifying budgets
• D) downsizing
• E) benchmarking

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Definitions:

NPV

Net Present Value is the calculation used to determine the value of future cash flows in today's dollars, subtracting the initial investment.

Multiple IRRs

Situations where a project or investment has more than one internal rate of return, occurring with alternating cash flows (positive and negative).

Cash Flows

Cash flow is the net amount of cash being transferred into and out of a business, considered essential for its operation, liquidity, and financial health.

WACC

The Weighted Average Cost of Capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets.