The Two Primary Issues to Consider in Organizational Feasibility Analysis

question 3

Multiple Choice

The two primary issues to consider in organizational feasibility analysis are ________.

• A) target market attractiveness and financial rate of return
• B) management prowess and resource sufficiency
• C) capital requirements and industry attractiveness
• D) concept testing and financial rate of return
• E) industry attractiveness and overall attractiveness of the investment

---

Definitions:

Annual Interest

The amount of interest charged or earned over a year on borrowed capital or investment principal.

Present Value

The contemporary financial worth of a future sum or ongoing cash flows, evaluated at a designated rate of return.

Compounded Annually

A method of calculating interest where the interest earned each year is added to the principal, and the interest for the next year is calculated on the total amount.

Unamortized Discount

The portion of a bond discount that has not yet been charged to expense because the bond has not reached its maturity.