In Capital Budgeting Computations, Discounted Cash Flow Methods

question 69

Multiple Choice

In capital budgeting computations, discounted cash flow methods:

• A)automatically provide for recovery of initial investment.
• B)can't be used unless cash flows are uniform from year to year.
• C)assume that all cash flows occur at the beginning of a period.
• D)ignore all cash flows after the payback period.

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Definitions:

Defense Mechanisms

Psychological strategies employed unconsciously to protect an individual from anxiety and perceived threats to self-esteem or self-concept.

Compensation

A compromise mechanism in which an individual attempts to make up for a negative situation by devoting himself or herself to another pursuit with increased vigor.

Conflict Management Techniques

Strategies and practices used to address and resolve disagreements and disputes in a constructive manner.

Nonaction

Doing nothing in hopes that a conflict will disappear.