Some Relatively Recent Ideas Regarding Cost Reduction Include

question 79

Multiple Choice

Some relatively recent ideas regarding cost reduction include:

• A)Reengineering, outsourcing, and organization delayering
• B)Innovation, delayering, and outsourcing
• C)Outsourcing, reengineering, and organizational structure
• D)Reengineering, organizational culture, and innovation

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Definitions:

Risk-adjusted Discount Rate

A discount rate that has been altered to account for the risk of the cash flows, used in capital budgeting to reflect the project's risk.

Net Present Value (NPV)

A method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Internal Rate of Return (IRR)

The specific rate at which the net present value of a project's cash flows equals zero.

Incremental Cash Flows

Incremental cash flows are the additional cash inflows or outflows expected from a new project or investment when compared to a baseline scenario.