A SWOT Analysis

question 10

Multiple Choice

A SWOT analysis

• A) Is a tool to assess organizational fit with its internal and external environments.
• B) Strengths & weaknesses look at an organization's internal resources and capabilities
• C) Opportunities & threats look to the opportunistic and predatory aspects from the outside that are possible threats to an organization's survival.
• D) All of the above

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Definitions:

Negative NPV

A situation where the net present value of a project or investment is negative, indicating that the expected cash inflows are not sufficient to cover the initial investment and the cost of capital.

Highest IRR

The maximum internal rate of return, representing the most favorable potential annual return on an investment, adjusted for time value of money.

Internal Rate of Return

Internal Rate of Return (IRR) is a financial metric used to estimate the profitability of potential investments, representing the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

NPV

Net Present Value, a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of an investment.