The Capital Budgeting Technique That Indicates the Profitability of a Capital

question 20

Multiple Choice

The capital budgeting technique that indicates the profitability of a capital expenditure is the

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

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Definitions:

Gallbladder

A small, pear-shaped organ located beneath the liver, which stores and concentrates bile, a digestive enzyme produced by the liver.

Salivary Glands

Glands located in the mouth that produce saliva, which begins the process of digestion and keeps the mouth and other parts of the digestive system moist.

Mouth

The opening in an organism's body that usually begins the digestive tract, where food is ingested.

Pharynx

A muscular tube that connects the mouth and nasal passages with the esophagus and larynx, serving both the respiratory and digestive systems.