Which of the Following Capital Budgeting Techniques Might Not Consider

question 100

Multiple Choice

Which of the following capital budgeting techniques might not consider the terminal value of a project?

• A)Net Present Value
• B)Internal Rate of Return
• C)Profitability Index
• D)Payback Period

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Definitions:

Operating Activity

Business actions involving the day-to-day operations that generate revenue and incur expenses in the production of goods or services.

Investing Activity

Transactions involving the purchase and sale of long-term assets and investments, part of a company's cash flow activities.

Financing Activity

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from total revenue.