The Best Approach to Convert an Infinite Series of Asset

question 70

Multiple Choice

The best approach to convert an infinite series of asset purchases into a perpetuity is known as the

• A) Net working capital approach
• B) Net present value approach
• C) Equivalent annual cost approach
• D) Equivalent annual cash flow approach

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Definitions:

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can contribute to an organization's performance and economy.

Shortage

A situation in which the demand for a product or service exceeds the available supply, often leading to higher prices or unmet consumer needs.

Organizational Flexibility

The ability of an organization to adapt rapidly and efficiently to changes in the internal and external environment.

HR Forecasting

The process of predicting an organization's future human resources needs based on current data, trends, and projected future events to ensure that the right number of people with the right skills are available when needed.