Which Statement Regarding Project Selection Is BEST

question 99

Multiple Choice

Which statement regarding project selection is BEST?

• A)Organizational reality can be perfectly captured by most decision-making models.
• B)Before selecting any project,the team should identify all the relevant issues that play a role in project selection.
• C)Decision models must contain either objective or subjective factors.
• D)Every decision model has both objective and subjective factors.

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Definitions:

Screening Decision

A decision as to whether a proposed investment project is acceptable.

Internal Rate

Often referred to as the internal rate of return (IRR), it is a rate of return used in capital budgeting to measure and compare the profitability of investments.

Cash Flows

The cumulative sum of funds moving into and away from a company, influencing its ability to cover short-term obligations.

Payback Period

Payback period is the duration it takes for an investment to recover its initial outlay, measured from the point of investment.