Which of the Following Investment Rules May Not Use All

question 15

Multiple Choice

Which of the following investment rules may not use all possible cash flows in its calculations?

• A)NPV
• B)Payback period
• C)IRR
• D)Profitability index

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Definitions:

Process Controls

Mechanisms and procedures implemented to regulate and optimize the performance of processes within an organization.

Formalization

Is written documentation of work rules, policies, and procedures.

Total Quality Management

A holistic approach to long-term success that views continuous improvement in all aspects of an organization as a process and not as a short-term goal.

Centralization

The degree to which the authority to make decisions is restricted to higher levels of management.