1. Action value is computed as:
a) stimulus value - action cost
b) reward value - risk of punishment
c) action satisfaction - action dissatisfaction
d) none of the above
Please explain
2. Innovation, Inc. evaluates capital investments by sorting and evaluating new ideas, determining how they affect a base case strategy and make final decisions based on NPV and risk. From reading 6, it's system is called:
a dynamic project evaluation system
a strategy and capital budgeting comparison system
a strategic commitment capital budgeting system
a risk-efficiency frontier budgeting system