Which of the Following Is Not One of the Top

question 82

Multiple Choice

Which of the following is not one of the top ten reasons companies outsource their operations?

• A)Releases capital funds for use in other projects
• B)Always less costly to outsource
• C)Provides external expertise to improve difficult-to-manage processes
• D)Accelerates the benefits of process reengineering

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Definitions:

Net Present Value

A financial analysis technique used to estimate the viability of projects or investments by discounting expected future cash flows to their present value.

Payback Period

The duration of time it takes to recoup the initial investment in a project or asset.

Cash Inflows

Cash Inflows are the money or cash received by a business from its various activities, including sales, investments, financing, etc.

Profitability Index

A capital budgeting tool that measures the ratio of the present value of future cash flows generated by an investment to the initial investment cost, used to assess the profitability.