There Are a Variety of Problems a Manager Might Face

question 31

Multiple Choice

There are a variety of problems a manager might face. While presenting and defending your approach, how would you complete this thought? ​
Several different modeling techniques are available to solve managerial decision problems,

• A) the wrong choice of modeling technique is a common source of implementation difficulties.
• B) students should develop a strong preference and expertise in one technique so when faced with problems as managers they can formulate them as a model that can be solved by their favorite technique.
• C) fundamental characteristics of the problem guide the selection of an appropriate modeling technique.
• D) most problems faced by managers are fundamentally the same.

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Definitions:

After-tax Salvage Value

The estimated value of an asset at the end of its useful life, after deducting any taxes owed from its disposal.

Required Rate of Return

The minimum expected return an investor demands for the risk associated with holding an investment.

Operating Cash Flow

The cash generated from the normal operating activities of a business over a specific period.

CCA Class

A category within the Capital Cost Allowance system in Canada that groups depreciable assets based on their type and the rate at which they can be depreciated for tax purposes.