The Quantitative Analysis Approach Requires

question 45

Multiple Choice

The quantitative analysis approach requires

• A) mathematical expressions for the relationship.
• B) uncomplicated problems.
• C) the manager to have prior experience with similar problems.
• D) access to a computer.

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Definitions:

Total Income

The sum of all revenue and gains for an entity over a specified period of time.

Present Value

The present value of a future amount of money or a series of future cash flows, discounted at a specific rate of return.

Internal Rate of Return

The discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.