As You Prepare to Analyze the Research Question and Topic

question 31

Multiple Choice

As you prepare to analyze the research question and topic, which of the following would be your best first move?

• A) considering whether there are options other than outsourcing this work
• B) asking entry-level employees how they feel about doing these tasks
• C) calling a few outsourcing service providers to get quotes from them
• D) finding out whether any of your competitors outsource this kind of work
• E) comparing the specific terms of a few different outsourcing service providers

---

Definitions:

Discount Rate

The discount rate employed to ascertain the present worth of forthcoming cash flows in an analysis of discounted cash flow.

NPV

Net Present Value; the calculation of the present value of cash inflows minus the present value of cash outflows over a period.

Cash Flows

The movement of money into and out of a business, representing its operating, investing, and financing activities.

WACC

Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, including debt, equity, and any other long-term debt.