An Assessment Method Widely Used in Practice Which Enables Managers

question 50

Multiple Choice

An assessment method widely used in practice which enables managers to screen investment projects to determine which projects can recoup their investment outlay the fastest is the:

• A) net present value method.
• B) payback method.
• C) internal rate of return method.
• D) accounting rate of return method.

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Definitions:

Contributions

Amounts given or donated to a particular cause, project, or for a retirement account.

Effective Rate of Return

A measure of the return on an investment that accounts for the effect of compounding over a specified time period.

Contributions

Payments or services provided by individuals or organizations to a common fund or project.

RRSP

Registered Retirement Savings Plan, a retirement savings and investing vehicle for employees and the self-employed in Canada that provides tax benefits.