Which of the Following Capital Budgeting Techniques May Potentially Ignore

question 22

Multiple Choice

Which of the following capital budgeting techniques may potentially ignore part of a project's relevant cash flows?

• A)net present value
• B)internal rate of return
• C)payback period
• D)profitability index

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Definitions:

Kiliani-Fischer Chain Lengthening

A chemical reaction that increases the carbon chain length of aldoses by one carbon atom using cyanohydrin formation.

Optical Activity

The ability of a compound to rotate the plane of polarized light, indicating its chiral nature.

Adenosine Monophosphate

A nucleotide composed of an adenine base attached to a ribose sugar and single phosphate group; involved in energy transfer within cells.

Kiliani-Fischer Synthesis

A method for elongating the carbon chain of a monosaccharide, thereby facilitating the synthesis of higher carbohydrates.