Competitive Business Environment Is Now Characterized by All of the Following

question 64

Multiple Choice

Competitive business environment is now characterized by all of the following except:

• A) unprecedented degrees of turbulence.
• B) dynamism.
• C) unpredictibility.
• D) inadaptability.
• E) environmental responsiveness.

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Definitions:

Cost of Capital

The lowest return required for a project involving capital investment, such as building a new production plant, to be deemed feasible.

Mutually Exclusive

In project selection or decision making, mutually exclusive refers to options where the selection of one option precludes the selection of another.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Payback

Payback is a capital budgeting metric that measures the time required for an investment to generate cash flows sufficient to recover the initial investment cost.