Which of the Following Statements About Comparing Capital Budget Techniques

question 50

Multiple Choice

Which of the following statements about comparing capital budget techniques is (are) correct?
I. The payback period is easy to understand and helps the firm identify how long it will be unable to use the initial investment for other projects.
II. Mutually exclusive projects allow a firm to do other like projects (mutually exclusive) simultaneously as long as the budget constraints are met.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements I and II are correct.
• D) Neither statement I nor II is correct.

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Definitions:

Nature And Purpose

The fundamental qualities and the intended goals or reasons behind a study or phenomenon.

Sampling Interval

The standard distance or time between samples, used to ensure an evenly distributed or systematic selection of data points from a larger population.

Convenience Sampling

A sampling method where the sample is taken from a group of people easy to contact or to reach.