Which of the Following Capital Budgeting Techniques Does Not Routinely

question 78

Multiple Choice

Which of the following capital budgeting techniques does not routinely rely on the assumption that all cash flows occur at the end of the period?

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

---

Definitions:

Straightforward Manipulation

The process of altering an independent variable in a simple and clear manner to observe its effect on the dependent variable.

External Validity

The degree to which the results of an experiment may be generalized.

Strong Manipulation

The application of a significant change or intervention in an experiment, aiming to produce a noticeable effect on the dependent variable.

Internal Validity

The certainty with which results of an experiment can be attributed to the manipulation of the independent variable rather than to some other, confounding variable.