Projected Financial Analysis Is an Important Strategy-Implementation Technique Because

question 97

Multiple Choice

Projected financial analysis is an important strategy-implementation technique because

• A) it is an exact measurement of financial costs in the future.
• B) it is an exact measurement of future company profits.
• C) it allows an organization to examine the expected results of various actions and approaches.
• D) insurance needs can be computed.
• E) none of the above

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Definitions:

Required Rate

Required rate refers to the minimum return an investor expects to achieve on an investment to consider it worthwhile.

Rate Of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Net Present Value

A valuation method that calculates the current worth of a project or investment based on its expected future cash flows.

Initial Investments

The initial capital or resources put into a project, business, or investment, critical for startup and initial operations.