If a Local Leader in a Developing Nation Claims That

question 140

Multiple Choice

If a local leader in a developing nation claims that there is little or no correlation between a person's efforts and the economic rewards that are given to that person, this leader is most likely expressing
A

• A) description of the vicious cycle of poverty.
• B) theory of exploitation and dependence.
• C) capricious view of the universe.
• D) rationale for neocolonialism.

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Definitions:

Payback Rule

A capital budgeting principle that evaluates an investment based on the time needed to recoup the invested capital.

Payback Cutoff

The maximum allowable period for an investment to recoup its initial cost, beyond which it is not considered.

NPV

Net Present Value; a calculation used to determine the present value of a series of future cash flows, less the initial investment.

Conventional Cash Flow

A pattern of cash flow over time where an initial outlay is followed by a series of positive cash inflows.