Which of the Following Investment Rules May Not Use All

question 28

Multiple Choice

Which of the following investment rules may not use all possible cash flows in its calculations?

• A) NPV
• B) Payback period
• C) IRR
• D) All of the above

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Definitions:

Capacitive Reactance

The opposition that a capacitor presents to the change in voltage, measured in ohms.

Frequency Source

An electronic component or circuit that generates a signal of a specific frequency, used in various types of electronic equipment.

Capacitive Reactance

The resistance a capacitor offers to AC current, dependent on the frequency of the current and the capacitance value.

Parallel Connection

A way of connecting electrical components so that they share the same voltage across them, but can carry different currents.