NPV and IRR May Give Conflicting Decisions for Mutually Exclusive

question 68

Multiple Choice

NPV and IRR may give conflicting decisions for mutually exclusive projects because:

• A) the risk of the projects may differ.
• B) the scale of the projects may differ.
• C) the discount rates on the projects may differ.
• D) all of the above.

Analyze the impact of downsizing and restructuring on employees.

Identify organizational interventions to support employees through downsizing.

Recognize the immediate and insidious consequences of downsizing and restructuring.

Develop strategies for aligning strategic human resource planning with organizational strategy.

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Definitions:

Cash Savings

The amount of money a company or individual keeps on hand that is not invested, spent, or used in paying off debts.

Salvage Value

The estimated value for which an asset can be sold at the end of its useful life, typically used for depreciation calculations.

Internal Rate

Often referred to as the internal rate of return (IRR), it is a financial metric used to estimate the profitability of potential investments.

Annual Cost Savings

The reduction in costs realized over a year, from actions such as process improvement or cost-cutting measures.