Decision Trees

question 90

Multiple Choice

Decision trees:

• A) give more accurate solutions than decision tables.
• B) give less accurate solutions than decision tables.
• C) are especially powerful when a sequence of decisions must be made.
• D) are rarely used because one needs specialized software to graph them.
• E) are too complex to be used by decision makers.

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Definitions:

Cash Flow Forecasts

Predictions of all the cash inflows and outflows expected to occur in a future period, helping businesses to ensure they maintain sufficient levels of cash.

NPV

A financial analysis approach that determines the present value of an investment's expected cash flows minus its initial cost, used to evaluate the attractiveness of projects.

Net Income

The net income of a company, calculated by deducting all costs and taxes from its total revenues.

Accounting Break-Even

The sales level that results in zero project net income.