In Stable and Simple Environments, ________

question 21

Multiple Choice

In stable and simple environments, ________.

• A) organic designs are most effective
• B) mechanistic designs are most effective
• C) low formalization is necessary
• D) decentralization is necessary

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Definitions:

Present Value Index

An investment appraisal tool that compares the present value of net cash inflows generated by a project to the present value of cash outflows, indicating the profitability.

Net Cash Flow

The difference between a company’s cash inflows and outflows in a given period, indicating the company's ability to generate cash.

Amount to Be Invested

The total sum of money dedicated to a particular investment or project.

Present Value Methods

A set of financial techniques used to calculate the current worth of a future stream of earnings or cash flows, taking into account the time value of money.