If Management Was Not Concerned with the Time Value of Money,from

question 28

Multiple Choice

If Management was not concerned with the time value of money,from which two capital budgeting methods should they choose?

• A)IRR or Payback.
• B)ARR or Payback.
• C)BET or IRR.
• D)BET or NPV.
• E)NPV or Payback.

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Definitions:

Total Utility

refers to the total satisfaction gained from consuming a particular quantity of goods or services.

Marginal Utility

Marginal utility is the additional satisfaction or benefit (utility) a consumer derives from purchasing one more unit of a good or service.

Difference

A term that refers to the disparity or distinction between two or more elements, items, or phenomena.

Marginal Utility

Additional gratification or utility that comes from consuming one more unit of a product or service.