ABC Corporation Wants to Expand on Its Markets in Its

question 12

Multiple Choice

ABC Corporation wants to expand on its markets in its new strategic plan. The plan covers the use of key resources available to the firm, including technology, people, and access to capital. Which of the following would be a critical human capital component of the plan?

• A) capital investments
• B) employees' skills
• C) new markets
• D) updated technology

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Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows.

Present Value Index

A calculation that compares the present value of cash inflows to the initial investment, often used in capital budgeting.

Compound Interest

The calculation of interest on the initial principal and also on the accumulated interest of previous periods.

Average Rate of Return

A method of determining the profitability of an investment by dividing the average annual profit by the initial investment cost.