The Capital Budgeting Technique That Finds the Interest Yield of the Potential

question 89

Multiple Choice

The capital budgeting technique that finds the interest yield of the potential investment is the

• A) annual rate of return method.
• B) internal rate of return method.
• C) net present value method.
• D) profitability index method.

---

Definitions:

Competitive Disadvantage

A condition or circumstance that puts a company at a less favorable position in the market compared to its competitors.

Financial Statements

Reports outlining a firm's financial health, encompassing its balance sheet, income statement, and cash flow statement.

Rigid Guidelines

Strict rules or procedures that are followed without allowance for flexibility.

Generally Accepted Guidelines

Broad principles, standards, and norms adhered to in a particular field or profession.