Briefly Describe How to Tell a Bad Strategy from a Good

question 86

Short Answer

Briefly describe how to tell a bad strategy from a good one.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually, affecting loans and savings.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Present Value

The present value is the current value of a future sum of money or stream of cash flows, discounted at a specified rate of interest.