Firms Experience Different Levels of Stability in Regards to Their

question 80

Multiple Choice

Firms experience different levels of stability in regards to their external environments. For example:

• A)The Roman Catholic church and the US Postal Service inhabit unstable environments
• B)Google works in a stable and predictable environment
• C)Baghdad Home Security Services Ltd.'s activities take place in a very stable environment
• D)The three items above are correct if stable is replaced by unstable and conversely

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Definitions:

Salvage Value

The foreseen market valuation of an asset at the lifespan’s end.

Present Values

The now-value of a forthcoming financial amount or cash flow pattern, discounted at a fixed rate of return.

Net Present Value Method

A financial analysis tool used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

Annual Return

The percentage of increase or decrease in an investment's value over a one-year period.