Intuitive Decision Processes Would Work Best When Which of the Following

question 65

Multiple Choice

Intuitive decision processes would work best when which of the following factors were dominant:

• A) managers can use networked computer databanks for analysis.
• B) there are few alternatives available.
• C) experience with similar decisions is extensive, and has been successful.
• D) a manager must make the decision alone.

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Definitions:

Present Value

The valuation today of an incoming stream of cash or one-time future payment, after accounting for a specified rate of return.

Cash Outflows

Money or cash disbursed by the business for various purposes, such as paying expenses, investing in assets, or repaying debts.

Cash Inflows

Money received by a business from its various activities, including sales, financing, and investments.

Discounting

The process of determining the present value of a payment or a stream of payments that is to be received in the future.