The Basic Capital Budgeting Decision Models (That Is NPV and IRR)

question 73

Multiple Choice

The basic capital budgeting decision models (that is NPV and IRR) handle risk by _____.

• A) ignoring it
• B) assuming all cash flows are known with certainty
• C) assuming all projects are of average risk
• D) using risk-adjusted discount rates to evaluate projects

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Definitions:

Marketing Mix

The set of actionable areas that a company uses to promote its brand or product in the market, traditionally identified as the 4Ps: Product, Price, Place, and Promotion.

Service Marketing Strategy

Service marketing strategy involves creating a plan to effectively promote and sell intangible services as opposed to tangible products, focusing on elements such as service quality, customer experience, and relationship building.

Inseparability

A characteristic of services indicating that they are produced and consumed simultaneously, making the quality of the service dependent on the provider-customer interaction.

Radio Frequency Identification (RFID)

A technology used to automatically identify and track tags attached to objects, using electromagnetic fields.