When Comparing Observations and Document Analysis

question 96

Multiple Choice

When comparing observations and document analysis:

• A) the time required to conduct observations compared to document analysis is low.
• B) the expense of the observation method is quite low.
• C) the potential audience of the observation method is limited.
• D) a clear commitment is discernible.
• E) the chances of probing and clarification are good with document analysis.

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Definitions:

Minimum Required Rate

The lowest return rate necessary for an investment to be considered acceptable.

Net Present Value

Net Present Value (NPV) is a calculation used to determine the current value of a series of future cash flows, taking into account a specified rate of return.

Required Rate

Often referred to as the discount rate or required rate of return, it is the minimum return an investor expects to receive for investing in a project or business.

Net Present Value

A method of evaluating the attractiveness of an investment project, by determining the present value of its expected future cash flows minus the initial investment.