The payback method considers cash flows that occur both during and after the payback period
Indicate whether the statement is true or false
FALSE
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The forecast time horizon for tactical decision-making is ______.
a. short term b. medium term c. long term d. very long term
Napoleon's Uncle Rico believes that the scenarios are not necessarily equally likely, and suggests that the likelihood of occurrence of Scenario 2 is 0.4 and the likelihood of occurrence of Scenarios 1 and 3 are both 0.3
What two criteria are most appropriate and what is the resulting decision? Napoleon is contemplating four institutions of higher learning as options for a Masters in Business Administration. Each university has strong and weak points and the demand for MBA graduates is uncertain. The availability of jobs, student loans, and financial support will have a significant impact on Napoleon's ultimate decision. Vanderbilt and Seattle University have comparatively high tuition, which would necessitate Napoleon take out student loans resulting in possibly substantial student loan debt. In a tight market, degrees with that cachet might spell the difference between a hefty paycheck and a piddling unemployment check. Northeastern State University and Texas Tech University hold the advantage of comparatively low tuition but a more regional appeal in a tight job market. Napoleon gathers his advisory council of Kip and Pedro to assist with the decision. Together they forecast three possible scenarios for the job market and institutional success and predict annual cash flows associated with an MBA from each institution. All cash flows in the table are in thousands of dollars. School Scenario 1 Scenario 2 Scenario 3 Vanderbilt 95 20 -10 Texas Tech 55 60 60 Seattle 90 10 80 Northeastern State 65 50 60
In effective global capacity management, the time horizon for a regular capacity planning cycle is ______.
a. short to intermediate term (0–1 year) b. intermediate to long term (1–4 or more years) c. short to intermediate term (3–4 weeks) d. intermediate to long term (15–20 or more years)
A firm must capitalize start-up expenditures of a new business in excess of $5,000 but may deduct expansion costs of an existing business.
Answer the following statement true (T) or false (F)