A Manager Wants to Implement Some Changes in the Working

question 7

Multiple Choice

A manager wants to implement some changes in the working hours of employees. Two groups of workers oppose this decision and have contrasting opinions. The manager feels arriving at a solution that will be acceptable to both parties is impossible. Which of the following strategies is best suited to handle this conflict?

• A) forcing
• B) deflecting
• C) avoiding
• D) resolving
• E) compromising

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Definitions:

Discount Rate

The interest rate used to calculate the present value of future cash flows.

Discount Rate

The rate of interest utilized within discounted cash flow methodology to calculate the current market value of future cash flows.

Net Present Value

The calculation of the current value of a series of future cash flows generated by an investment minus the initial capital cost.

Present Value

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