Which Method of Investment Appraisal Has Been Found in Surveys

question 55

Multiple Choice

Which method of investment appraisal has been found in surveys to be the least popular with businesses?

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

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Definitions:

Sophisticated Investors

Individuals or entities with extensive market experience and knowledge, making them capable of making informed investment decisions.

Corporate Finance

The division of finance that deals with funding sources, capital structure, and investment decisions of corporations.

Stocks And Bonds

Financial instruments where stocks represent ownership in a company and can yield dividends, while bonds are debt securities that pay fixed interest.