The Internal Rate of Return and the Net Present Value

question 83

Multiple Choice

The internal rate of return and the net present value methods for making capital budgeting decisions are superior to the payback method because they:

• A) Require less input
• B) Are easier to implement
• C) Consider the time value of money
• D) Reflect depreciation and income taxes

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Definitions:

Custodial Department

A division or department within an organization responsible for cleaning, maintenance, and upkeep of facilities.

Direct Method

A method of allocating service department costs directly to production departments without any intermediate allocation steps.

Personnel Department

is the department within an organization responsible for hiring, training, and managing employees, as well as dealing with personnel-related issues.

Number Of Employees

The total number of individuals working for a company, including full-time, part-time, and temporary staff.