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Questions and Answers
What does strategic planning involve?
What does strategic planning involve?
- Conducting daily operations
- Analyzing past performance
- Reacting to immediate market changes
- Predicting future trends (correct)
Which method helps in determining the amount of time it will take to recoup the invested amount in a project?
Which method helps in determining the amount of time it will take to recoup the invested amount in a project?
- SWOT analysis
- Return on investment (ROI)
- Payback analysis (correct)
- Net present value (NPV) analysis
How is Net Present Value (NPV) calculated?
How is Net Present Value (NPV) calculated?
- Total discounted benefits minus initial costs (correct)
- Total discounted costs divided by total discounted benefits
- Total discounted costs subtracted from total sales revenue
- Total discounted benefits multiplied by initial costs
In Return on Investment (ROI) calculation, what does the ROI formula represent?
In Return on Investment (ROI) calculation, what does the ROI formula represent?
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What is the primary consideration when calculating ROI for a project?
What is the primary consideration when calculating ROI for a project?
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Which analysis method focuses on the current worth of a project with respect to a discount rate?
Which analysis method focuses on the current worth of a project with respect to a discount rate?
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For a project, what does a higher Net Present Value (NPV) indicate?
For a project, what does a higher Net Present Value (NPV) indicate?
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What is the purpose of Payback Analysis?
What is the purpose of Payback Analysis?
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What can be deduced from a shorter payback period for a project?
What can be deduced from a shorter payback period for a project?
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