Which Method for Evaluating Capital Investment Proposals Reduces the Expected

question 48

Multiple Choice

Which method for evaluating capital investment proposals reduces the expected future net cash flows originating from the proposals to their present values and computes a net present value?

• A) net present value
• B) average rate of return
• C) internal rate of return
• D) cash payback

---

Definitions:

Symptoms Of Groupthink

Characteristics or signs indicating a group is prioritizing unanimity and cohesion over critical analysis, which can lead to poor decision-making.

Groupthink

A phenomenon in decision-making where the desire for consensus in a group leads to uncritical acceptance of ideas, suppressing dissent and leading to suboptimal outcomes.

Avoid Groupthink

Encouraging diversity of thought in teams to prevent the occurrence of poor decision-making stemming from a desire for harmony.

Clear And Elevating Goal

A well-defined objective that is inspiring and motivates individuals or teams to achieve higher performance.