Which Capital Budgeting Technique Defines Returns in Terms of Income

question 92

Multiple Choice

Which capital budgeting technique defines returns in terms of income instead of cash flows?

• A) The unadjusted rate of return
• B) The internal rate of return method
• C) The net present value method
• D) The payback method

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Definitions:

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The process of converting residuals from a regression analysis into a standard scale to identify outliers or make comparisons.

Variance

An indicator of the variability or extent to which a collection of data values is spread out from their average.

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A measure of how heavy or light a petroleum liquid is compared to water, used to classify oils.

Confidence Interval

An estimated range of values which is likely to include an unknown population parameter, calculated from a given set of sample data.