One Way of Incorporating Intangible Benefits into the Capital Budgeting

question 54

True/False

One way of incorporating intangible benefits into the capital budgeting decision is to project conservative estimates of the value of the intangible benefits and include them in the NPV calculation.

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Definitions:

Reinforcement

A process in behavioral psychology where a behavior increases in frequency because it is followed by a rewarding stimulus.

Antecedent

Anything that occurs before a behavior that may trigger or cause a certain behavior to occur, often used in the analysis of behavior patterns.

Consequence

The result or effect of an action or condition, often seen in terms of how it affects an earlier event.

Enhancement

Refers to the improvement or intensification of qualities, performance, or characteristics, often through the use of technological, chemical, or psychological means.