In Net Present Value Analysis for a Proposed Capital Investment

question 104

True/False

In net present value analysis for a proposed capital investment, the expected future net cash flows are averaged and then reduced to their present values.

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Definitions:

Classical Utilitarians

Philosophers such as Jeremy Bentham and John Stuart Mill who advocated for utilitarianism, a moral theory that actions are right if they result in the greatest happiness for the greatest number of people.

Act Consequentialists

Ethical theorists who evaluate the morality of an action based solely on the outcomes or consequences it produces.

Utilitarian Decision

A decision-making process that maximizes overall happiness and minimizes overall pain, in line with utilitarian principles.

Rule Consequentialism

A theory in moral philosophy that suggests the rightness or wrongness of an action should be judged by the conformity to a rule whose general observance would lead to the best consequences.