It Is Poor Practice to Use More Than One Approach

question 93

True/False

It is poor practice to use more than one approach for creating a cost estimate.

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Definitions:

Mutually Exclusive

Decision scenarios or events that cannot happen simultaneously; choosing one option excludes the possibility of selecting the other.

Incorrect Decisions

Actions or choices made based on faulty reasoning, incorrect information, or a misunderstanding of the situation.

Internal Rate

Represents the internal rate of return (IRR), a metric used to estimate the profitability of potential investments.

Discount Rate

is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows, affecting investment valuations and interest rates on loans.