A fiRm Seeks to Accept Projects with a High Degree

question 113

Multiple Choice

A firm seeks to accept projects with a high degree of liquidity, avoid the higher forecasting error associated with cash flows occurring in the distant future, and avoid projects that require a large
Amount of research and development expenses. This firm may be justified in using the
____________ to evaluate its projects.

• A) IRR rule.
• B) NPV rule.
• C) AAR rule.
• D) Payback rule.
• E) PI rule.

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Definitions:

Frederick Taylor

An American engineer and management consultant who is known as the father of scientific management.

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