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Table A.3
Use the following to answer the questions below.
In choosing between three new jobs,Joe MBA considers the potential payoffs over the next three years.The following table contains the payoffs,given the speed of promotion in each of the organizations.The probability of fast promotion is 0.6,and the probability of slow promotion is 0.4.
-Use the information in Table A.3.Which alternative is BEST,given the matrix payoff?
IRR
Internal rate of return; a financial metric used to assess the profitability of investments by calculating the rate of return where net present value of all cash flows (both positive and negative) from a project equals zero.
Project
A temporary endeavor undertaken to create a unique product, service, or result.
Payback Criterion
A capital budgeting method that measures the time required to recoup the initial investment in a project.
Mutually Exclusive
Referring to events or choices that cannot occur or be taken simultaneously; selecting one option excludes the availability or selection of the other.
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