The Power of Bureaucracies Grows with

question 25

Multiple Choice

The power of bureaucracies grows with

• A) advances in technology.
• B) increased tax revenue.
• C) new presidential elections.
• D) Congressional regulations.

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Definitions:

Discounted Payback

A capital budgeting method that calculates the amount of time needed to recoup an investment based on its discounted cash flows.

Profitability Index

A calculation used to assess the desirability of an investment, defined as present value of future cash flows divided by initial investment.

Net Present Value

Net Present Value (NPV) is a financial measurement that calculates the current value of expected future cash flows from an investment, adjusted for time and interest.

Average Accounting Return

A financial ratio that calculates the average annual income from an investment compared to its initial cost.