Examlex
Which of the following performance measures cannot result in dysfunctional behavior?
Forecasting Risk
The potential deviation of outcomes from predicted results in financial projections, due to uncertainties in the market or inaccurate assumptions.
Projected Cash Flows
Estimates of the amount of money expected to be received and paid out by a business over a future period.
Capital Rationing
A strategy or situation where a company limits its new investments or projects due to constraints in available capital.
NPV
Net Present Value; a calculation used to estimate the value of an investment, considering the present value of its future cash flows.
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