In Calculating the Net Present Value of an Investment in Equipment

question 39

True/False

In calculating the net present value of an investment in equipment, the required investment and its residual value should be subtracted from the present value of all future cash inflows.

---

Definitions:

Organizational Analysis

A systematic process for obtaining detailed understanding of the functions, structures, processes, and environmental influences affecting an organization.

Corporate Strategy

The overall plan and direction that a company adopts to achieve its long-term goals and objectives, balancing its resources and potential opportunities.

Training Program

A structured and systematic sequence of educational or learning activities designed to achieve specific learning outcomes or improve performance.

Needs Analysis

A process used to identify gaps between current and desired performance or outcomes, often used in organizational and training contexts.