The Rate of Return Approach

question 259

Multiple Choice

The rate of return approach

• A) does not consider the present value concept.
• B) is better than the present value approach.
• C) determines the rate of interest when the net present value is zero.
• D) does not consider the cost of capital.

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Definitions:

Logical-Mathematical

Referring to a type of intelligence that involves the ability to analyze problems logically, carry out mathematical operations, and investigate issues scientifically.

Cognitive Style

A habitual and/or preferred means of approaching cognitive tasks.

Field Independence

A cognitive style characterized by the ability to maintain orientation or focus on details in the presence of distracting background information.

Field Dependence

A cognitive style characterized by reliance on external frames of reference for orientation and problem-solving.