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Return on Investment Is the Major Decision Criteria in Credit

question 33

True/False

Return on investment is the major decision criteria in credit decisions.


Definitions:

NPV

Stands for Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project.

Scenario Analysis

The process of analyzing and evaluating possible future events by considering various feasible outcomes or scenarios, typically to assess potential risks and impacts.

Best Case Scenario

The most favorable or desirable outcome possible in a given situation.

Worst Case Scenario

the most adverse condition or outcome that can reasonably be projected.

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