The Following Are Measures Used by Firms When Making Capital

question 50

Multiple Choice

The following are measures used by firms when making capital budgeting decisions except

• A)payback period.
• B)internal rate of return.
• C)P/E ratio.
• D)net present value.

---

Definitions:

Ordinal Random Variable

A random variable that has outcomes which can be ordered or ranked but does not necessarily have a quantitative value.

Nominal Random Variable

A variable that represents data which can be classified into distinct categories with no logical order.

Nominal Data

Data classified into categories that cannot be ordered or ranked; purely qualitative.

Interval Data

A type of data measurement where the intervals between values are meaningful, allowing for arithmetic operations to be performed.