In Expectancy Theory, the P-To-O Expectancy Is the Perceived Probability

question 73

True/False

In expectancy theory, the P-to-O expectancy is the perceived probability that a specific behavior or performance level will lead to a particular outcome.

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Definitions:

Annual Cost Savings

The reduction in costs achieved during a fiscal year, enhancing the organization's profitability.

Discount Rate

This rate is applied within discounted cash flow analysis to determine the contemporary monetary worth of future cash movements.

Investment Required

The total amount of capital needed to undertake a project, investment, or start a business.

Net Present Value

A method used in capital budgeting to determine the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows over a period of time.