Incorporating Flotation Costs into the Analysis of a Project Will

question 64

Multiple Choice

Incorporating flotation costs into the analysis of a project will:

• A) cause the project to be improperly evaluated.
• B) increase the net present value of the project.
• C) increase the project's rate of return.
• D) increase the initial cash outflow of the project.
• E) have no effect on the present value of the project.

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Definitions:

Markov Analysis

A statistical technique used to predict the future behavior of a system or process based on its current state and known probabilities of various outcomes.

Horizontal Fit

Refers to the alignment between an individual's skills and interests and the job requirements or the compatibility between various HR practices within an organization.

Vertical Fit

The alignment between an individual's career path and the strategic objectives or needs of the organization.

HR Alignment

The process of ensuring that human resource practices are in harmony with the strategic goals and objectives of an organization.