Which Investment Analysis Technique Is Used the Least by CFOs

question 63

Multiple Choice

Which investment analysis technique is used the least by CFOs?

• A)Net present value
• B)Internal rate of return
• C)Payback
• D)Book rate of return

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Definitions:

Mixed Numbers

A number consisting of an integer and a fraction, used to represent quantities that are more than a whole but less than the next whole number.

Improper Fractions

Fractions in which the numerator is at least as large as the denominator.

Lowest Terms

The most reduced form of a fraction, where the numerator and denominator are the smallest whole numbers possible.

Mixed Numbers

Numbers consisting of an integer and a proper fraction, representing sums of whole numbers and fractions.