When an Employee Comes to You with a Feasibility Evaluation

question 90

True/False

When an employee comes to you with a feasibility evaluation of a decision alternative,he will give you information about how practical the alternative is for the organization.

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Definitions:

Benefit-Cost Perspective

A method of evaluating projects or decisions by comparing the benefits they will generate to the costs required to implement them.

NPV

Net Present Value (NPV) is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Present Value

The today's worth of a future sum or cash flows series, based on a predetermined rate of return.

Cash Inflows

Refers to the money coming into a company, typically from operations, investments, and financing activities.