Which of the Following Is a Technique for Evaluating Capital

question 63

Multiple Choice

Which of the following is a technique for evaluating capital projects that tells how long it will take a firm to earn back the money invested in a project?

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

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Definitions:

Capillary puncture

A medical procedure that involves pricking the skin, typically the fingertip, to obtain small blood samples.

Middle finger

The third digit of the human hand, located between the index finger and the ring finger, often used in gestures of insult or displeasure.

Ring finger

The fourth digit of the human hand, often associated with the wearing of rings to denote marital status.

Blood sample

A small amount of blood taken from the body, typically for medical testing.