If You Want to Compare the Present Value of the Future

question 86

Multiple Choice

If you want to compare the present value of the future cash inflows of a project with its initial cost,you should use the _______ method of analysis.

• A)payback
• B)incremental IRR
• C)profitability index
• D)average accounting return
• E)internal rate of return

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Definitions:

Organizations Learn

The process by which organizations adapt and improve over time through the acquisition, transfer, and retention of knowledge.

Success

Success is the achievement of a goal, target, or objective, often measured by predefined criteria or personal satisfaction.

Learning Organizations

Learning organizations are those that actively enhance their capacity to adapt and evolve by creating, acquiring, and transferring knowledge, and modifying their behavior to reflect new knowledge and insights.

Profitability

The ability of a business to earn a profit, calculated as the difference between its revenue and expenses.