A Decision with More Than One Objective

question 22

Multiple Choice

A decision with more than one objective

• A)cannot have an optimal solution.
• B)requires the decision maker to place the objectives in some order of importance.
• C)depends on the probability of satisfying each objective.
• D)should be decomposed into a separate model for each objective.

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Definitions:

Required Rate

The minimum percentage return that an investor expects to achieve from an investment.

Average Accounting Return

A measure of the profitability of an investment, calculated as the average net income divided by the average book value of the investment.

Straight-line Depreciation

A method of allocating the cost of a tangible fixed asset over its useful life in equal annual installments.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.