Capital Budgeting Techniques Using Present Value Techniques Are Useful in Helping

question 48

Multiple Choice

Capital budgeting techniques using present value techniques are useful in helping management:

• A)decide which costs are most relevant in decision making.
• B)identify investment alternatives that will contribute most to future profitability.
• C)determine an accounting rate of return.
• D)determine an investments payback period.

---

Definitions:

Cattle

Large domesticated bovines raised for their meat, milk, or hides, but in economic context, it broadly relates to agricultural commodities.

Opportunity Cost

The expense incurred by not selecting the second-best choice while deciding or preferring one option to another.

Cars

Motor vehicles with four wheels, primarily used for transporting people rather than goods.

Lumber

Wood that has been processed into beams and planks, a stage in the process of wood production.