Which Two Methods of Project Analysis Are the Most Biased

question 80

Multiple Choice

Which two methods of project analysis are the most biased towards short-term projects?

• A) Net present value and internal rate of return
• B) Internal rate of return and profitability index 
• C) Payback and discounted payback
• D) Net present value and discounted payback 
• E) Discounted payback and profitability index

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Definitions:

Calculate

To determine the amount or number of something by mathematical means.

Simple Interest Rate

An interest rate calculation method where the interest is computed solely on the principal amount, without compounding.

September

The ninth month of the year in the Gregorian calendar, often associated with the beginning of the academic year in many countries.

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Placing funds into a bank account or making an investment where the money is held under a specific condition.