NPV Is Superior to Average Accounting Return as a Capital

question 68

Multiple Choice

NPV is superior to average accounting return as a capital budgeting technique because:

• A) it employs the accounting definition of income.
• B) it values each cash flow equally based on dollar value.
• C) it employs the actual cost of an investment.
• D) it employs cash flows.

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Definitions:

Sentence Structure

The arrangement of words and phrases to create well-formed sentences in a language.

Passive Verbs

Verbs that emphasize the action being received by the subject rather than the action being performed by the subject.

Project Progress Report

A document that describes the current status, achievements, and future plans of a project to stakeholders.

Planning Progress Report

A document outlining the current status and future steps of a project or task, focusing on what has been accomplished and what remains to be done.