Managers Using Discounted Cash Flow Methods to Make Capital Budgeting

question 53

True/False

Managers using discounted cash flow methods to make capital budgeting decisions make the same decisions that they would make in using the accrual accounting rate-of-return methods.

---

Definitions:

Higher Goals

Objectives that reflect broader, more significant aspirations or ideals, surpassing basic or immediate needs in pursuit of longer-term fulfillment.

Delayed Reinforcement

A technique in which a response is followed by a reward not immediately but after a time delay, influencing future behavior.

Immediate Reinforcement

The prompt delivery of a reward or consequence following a behavior, which strengthens the likelihood of that behavior occurring again.

Continuous Reinforcement

A reinforcement strategy where a desired behavior is rewarded every time it occurs, leading to quicker learning of that behavior.