Short-Term Objectives __________ Long-Term Objectives

question 54

Multiple Choice

Short-term objectives __________ long-term objectives.

• A) Limit the effectiveness of
• B) Operationalize
• C) Decrease the need for
• D) Justify

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Definitions:

WACC

The Weighted Average Cost of Capital identifies the cost of a company's capital by weighting each capital category in proportion to its significance.

NPV

Net Present Value, a method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

IRR

Internal Rate of Return; the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Time Value of Money

The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.