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Utilitarianism Is Based on the Assumption of Diminishing Marginal Product

question 38

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Utilitarianism is based on the assumption of diminishing marginal product.

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Definitions:

Discounted Cash Flow Technique

Considers both the estimated total net cash flows from the investment and the time value of money.

Net Present Value Method

A method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows.

Internal Rate Of Return Method

A method of calculating the profitability of potential investments where the net present value of all cash flows equals zero.

Capital Budgeting

Capital Budgeting is the process by which organizations evaluate potential major projects or investments to determine their value and allocation of capital.

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