Why the irr on business project is like banks interest rate


Discussion Post

A. According to the article 360-Degree Evaluations, " In a "360," four to eight individuals who work with you give you feedback on your job performance. The group will typically include your boss and a selection of peers, subordinates and, sometimes, customers." This sounds like an interesting concept but it might be to much information about the employee to other employees that is not needed. What do you think about these types of evaluations? What are some pros and cons?

B. Think about the cash flows associated with putting in the bank for five years, assuming you draw out the interest each year and then close the account. Now think about a set of hypothetical cash flows associated with putting the same money in a business, operating for five years, and then selling out. Write an explanation of why the IRR on the business project is like the bank's interest rate. How are the investments different?

C. Why is it desirable to construct capital budgeting rules so that higher-risk projects become less acceptable than lower-risk projects?

The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.

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Financial Management: Why the irr on business project is like banks interest rate
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