Managers Make Most Decisions Based on

question 26

Multiple Choice

Managers make most decisions based on

• A) finances, rules, and time
• B) pleasing guests and employees
• C) learned skills
• D) food choices and schedules
• E) rationality, commitment, and intuition

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Definitions:

Internal Rate Of Return

A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Required Discount Rate

The minimum expected rate of return on an investment, used in the discounting process of present value calculations.

Profitability Index

A financial tool used to determine the desirability of an investment or project by dividing the present value of future cash flows by the initial investment cost.