Net Present Value=

question 106

Multiple Choice

Net present value=

• A)present value of future cash flows divided by initial cash outlay
• B)present value of future cash flows plus initial cash outlay
• C)present value of future cash flows multiplied by initial cash outlay
• D)present value of future cash flows minus initial cash outlay

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Definitions:

Decision Making

The cognitive process resulting in the selection of a course of action among several alternative scenarios and outcomes.

Information Linkages

Connections or networks that facilitate the flow of information between individuals, groups, or organizations.

Virtual Organization

A networked organization that links people, assets, and ideas without being bound by traditional physical locations or structures.

Market Opportunity

A potentially profitable situation where there is demand for a product or service that is not being met by current supply.