An Advantage of Factor Rating for Project Selection Is That

question 8

Multiple Choice

An advantage of factor rating for project selection is that it:

• A) Is a compensatory model
• B) Is focused solely on financial outcomes
• C) Offers objective measures that eliminate human bias
• D) Involves no arithmetic calculations
• E) Allows for comparisons on several weighted criteria

Understand the concept of attribution and its applications in social psychology.

Differentiate between internal and external attributions.

Recognize factors that influence attribution, including the actor-observer effect and cultural differences.

Identify the types of information used in making attributions according to Harold Kelley.

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Definitions:

Internal Rate

Often synonymous with "Internal Rate of Return," referring to the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Capital Expenditure

Capital deployed by a corporation to buy, improve, and upkeep tangible assets like land, factories, or machinery.

NPV

Net Present Value, a calculation used to determine the present value of a series of future cash flows minus the initial investment, utilized in capital budgeting to assess the profitability of an investment.

Least-Cost Decision

A decision-making process focused on selecting the option that requires the lowest financial outlay while still achieving the desired result.