Individuals Might Adjust Their Inputs or Outcomes in Order to Mitigate

question 59

True/False

Individuals might adjust their inputs or outcomes in order to mitigate concerns about inequity.

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Definitions:

Discounted Payback

A method to evaluate the profitability of an investment by calculating the time it takes for the net present value of cash flows to equal the initial investment cost.

Required Return

The minimum expected return on an investment necessary to compensate for the risk taken by the investor, including the time value of money and inflation.

Payback

A method of investment appraisal that calculates the time needed for an investment to generate cash flows sufficient to recover the initial outlay.

Four Year Payback

A capital budgeting method that calculates the time required to recoup the initial investment in a project, specifically over a period of four years.