Objectives Set in Both Financial and Operations Terms Is an Example

question 29

Multiple Choice

Objectives set in both financial and operations terms is an example of long-term, medium-term or short-term planning and control?.

• A) Long-term planning and control
• B) Medium-term planning and control
• C) Short-term planning and control

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Definitions:

Profitability Index

A financial metric used to evaluate the potential profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Discount Rate

The interest rate used to discount future cash flows to their present value, which is crucial in time value of money calculations and in assessing investment opportunities.

Independent Projects

Investment projects whose cash flows are not affected by the acceptance or rejection of other projects.

Discounted Payback

A method in capital budgeting that determines the amount of time needed to recover the initial investment, accounting for the present value.