The period of time, or width of the “window,” over which alternatives will becompared is also known as the: a. Planning horizon b. Shortest life c. Minimum Attractive Rate of Return d. Do-nothing alternative

The period of time, or width of the “window,” over which alternatives will becompared is also known as the: a. Planning horizon b. Shortest life c. Minimum Attractive Rate of Return d. Do-nothing alternative

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 6P

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Question

The period of time, or width of the “window,” over which alternatives will be
compared is also known as the: a. Planning horizon b. Shortest life c. Minimum Attractive Rate of Return d. Do-nothing alternative

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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