Identify Which One of the Following Is a Reason to Study

question 142

Multiple Choice

Identify which one of the following is a reason to study a simpler model such as the payback method.

• A)The payback method is the most popular method of capital budgeting.
• B)Simpler models are more accurate because they require less estimation.
• C)Simpler models might provide some useful information to supplement the discounted-cash-flows analysis.
• D)Simpler models are conceptually superior to discounted-cash-flows analysis.

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Definitions:

Safer

Relates to conditions, practices, or items that minimize or reduce risk and enhance security.

Market Wage Rate

The average or prevailing wage paid to workers in a specific market or industry.

Out-of-town Travel

Journeys made to destinations outside one's usual residence or place of work, often implying leisure or business travel that takes place away from the local area.

Work Hours

The specific times or period during which an employee is expected to carry out their job duties.