Which of the Following Two Methods Are Most Likely Give

question 51

Multiple Choice

Which of the following two methods are most likely give the same decision of accepting or rejecting a particular project?

• A)Net present value and internal rate of return
• B)Accounting rate of return and payback period
• C)Accounting rate of return and internal rate of return
• D)Net present value and accounting rate of return

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Definitions:

Committed Cost

Expenses that a company has formally pledged or is obligated to incur, often fixed costs related to contracts or legal commitments.

Firm

A business entity involved in commercial, industrial, or professional activities, whether incorporated or not.

Machine Maintenance

The routine or periodic upkeep and repairs of machinery to ensure its optimal functioning and prevent breakdowns.

Relevant Range

The range of activity or volume over which the assumptions about cost behavior are valid.