Evaluating Alternatives, in Which Positive and Negative Outcomes Are Examined

question 75

Short Answer

Evaluating alternatives, in which positive and negative outcomes are examined, is done with the help of a tool called __________.

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Definitions:

Payback

The period of time needed for an investment to generate cash flow sufficient to recover the initial expense incurred.

Simplicity

The quality of being easily understood or performed; favoring clear, uncluttered methods and procedures.

Managers

Individuals responsible for controlling or administering all or part of a company or similar organization.

Capital Budgeting Process

Involves the evaluation and selection of long-term investments that are in line with the firm's goal of shareholder wealth maximization.