Which Method for Evaluating Capital Investment Proposals Reduces the Present

question 132

Multiple Choice

Which method for evaluating capital investment proposals reduces the present value of cash outflows from the present value of cash inflows?

• A) Payback method
• B) Internal rate of return
• C) Net present value
• D) Unadjusted rate of return

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Definitions:

Judgmental Sampling

A non-random sampling technique where the researcher selects units to be sampled based on their knowledge and professional judgment.

Network Sampling

A method of sample selection used in research that involves choosing participants through networks or connections within a specific population.

Stratified Random Sampling

Sampling in which randomly selected units from small or minority populations are forced into the sample to ensure that they are represented in proportion to their presence in the population.

Purposive Sampling

A non-random sampling technique in which the researcher selects participants based on specific characteristics or qualities.