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In the Lawrence and Lorsch Study,managerial Goals and Time Spans

question 83

Short Answer

In the Lawrence and Lorsch study,managerial goals and time spans varied such that the plastics firms were more highly than the container firms.


Definitions:

NPV

Net Present Value, a calculation that represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Discount Rate

The interest rate that a central bank charges financial institutions for short-term loans, or used in discounted cash flow (DCF) analysis to present value future cash flows.

APR

The Annual Percentage Rate, which is the interest rate for a whole year on a loan, including fees.

Present Value Payback Period

A capital budgeting technique that calculates the period of time required for the present value of future cash flows to cover the initial investment cost.

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