Of the Capital Budgeting Techniques Discussed, Which Works Equally Well

question 4

Multiple Choice

Of the capital budgeting techniques discussed, which works equally well with normal and non-normal cash flows and with independent and mutually exclusive projects?

• A) Payback period
• B) Discounted payback period
• C) Modified internal rate of return
• D) Net present value

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Definitions:

Filling

In manufacturing, it refers to the process of putting product into containers or packaging; in accounting, it could refer to completing or updating records but this usage is less direct.

Plant Assets

These are long-term tangible assets that are used in the production of goods and services and are expected to provide benefits for more than one year.

Income Statement

A financial statement that reports a company's financial performance over a specific period, displaying revenue, expenses, and net income.

Additions and Improvements

Capital expenditures made to increase the value of existing assets, often leading to a longer useful life or increased functionality.