The ________ Forecasting Method Requires the Most Computer Power

question 11

Multiple Choice

The ________ forecasting method requires the most computer power.

• A) econometric
• B) cross-impact
• C) regression
• D) historical analogy

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Definitions:

Payback Period

The payback period is the time it takes for an investment to generate cash flows sufficient to recover its initial cost.

Net Present Value

A calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time, used to assess the profitability of an investment.

Payback Period Method

A simple calculation that divides the initial investment by the annual cash inflows to determine how long it will take to recoup the initial investment.

Capital Budgeting

The process of planning and managing a firm's long-term investments in projects and assets.