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Redemption Inc

question 7

Multiple Choice

Redemption Inc., an event management firm, wants to establish a social media marketing department. The management assigns one of the company's best managers to form a team of six employees and undertake a project to increase Redemption's presence on social media. The project is closed after it is successfully completed. Redemption Inc. forms a new social media marketing department with the project team members. In the context of project closure, this scenario exemplifies _____.


Definitions:

Return

Total monetary flow of an asset as a fraction of its price.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Real Discount Rate

The rate used to discount future cash flows to their present value, adjusting for inflation.

Nominal Discount Rate

The rate of interest quoted or advertised on a loan or investment, not adjusted for inflation.

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