What Is the Difference Between an Internal and External Locus

question 36

Essay

What is the difference between an internal and external locus of control? How would this affect employers and employees?

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Definitions:

Capital Budgeting Technique

A process of evaluating and comparing the potential expenditures or investments which are significant in amount, to determine their worthiness for funding.

Present Valued Dollar

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

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.

Reinvestment Assumption

The premise in finance that cash flows received from an investment will be reinvested at a certain rate, affecting future cash flows and the overall return.