What Is an RFP and How Is It Used in the Vendor

question 6

Essay

What is an RFP and how is it used in the vendor selection process?

---

Definitions:

Shareholder Wealth

The total value of shares held by investors in a company, often used as a measure of company’s financial health and management performance.

Cost of Capital

The cost of capital represents the minimum return a company needs to achieve to justify the risk of the investment, encompassing the cost of debt and equity.

Mutually Exclusive

Events or choices that cannot occur or be chosen at the same time.

Internal Rate of Return

A metric used in capital budgeting to estimate 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 zero.