A Corporation Uses Environmental Scanning to Avoid Strategic Surprises and Ensure

question 6

True/False

A corporation uses environmental scanning to avoid strategic surprises and ensure long-term health.

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Definitions:

Required Rate

The minimum rate of return on an investment that investors demand, taking into account the investment’s risk level compared to the risk-free rate of return.

Annual Cash Flows

The total amount of money being transferred into and out of a business, captured on a yearly basis, and used to assess the financial health of the entity.

IRR Cross-Over Rate

The rate of return at which two different investments have the same net present value; used in comparing project alternatives.

Annual Cash Flow

The net amount of cash and cash-equivalents moving into and out of a business in a given fiscal year.