Net Present Value

question 115

Multiple Choice

Net present value:

• A)is the best method of analyzing mutually exclusive projects.
• B)is less useful than the internal rate of return when comparing different sized projects.
• C)is the easiest method of evaluation for non-financial managers to use.
• D)is less useful than the profitability index when comparing mutually exclusive projects.
• E)is very similar in its methodology to the average accounting return.

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Definitions:

TPS Employee

An employee working within the Toyota Production System, focusing on lean manufacturing and continuous improvement.

Job Classifications

A system that categorizes jobs based on criteria such as responsibilities, skills required, and the complexity of tasks, often used for hierarchical organization and payroll.

JIT

Just-In-Time manufacturing is a management strategy that aligns raw-material orders from suppliers directly with production schedules to improve efficiency and reduce inventory costs.

Competitive Advantage

The conditions that allow a company or country to produce goods or services more effectively than competitors, leading to greater profits and market share.