The Idea of Consolidating Several Smaller Agencies into Larger Ones

question 21

Multiple Choice

The idea of consolidating several smaller agencies into larger ones is an effort to solve which problem?

• A)budget costs
• B)fragmentation
• C)low attrition rates
• D)merging

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Definitions:

NPV Rule

The principle that an investment is considered acceptable if its net present value (NPV) is positive, under the context of discounted cash flow analysis.

Decision-Maker

An individual or group responsible for making choices that will impact themselves or others, often involving allocation of resources or resolutions in the face of challenges.

Zero NPV

A scenario in which the net present value of a project or investment is zero, indicating that the projected cash flows exactly discount the initial investment, showing neither a loss nor a gain.

Multiple IRRs

A phenomenon that occurs when there is more than one internal rate of return for a project due to changing cash flow signs over the project's lifetime.