The Method of Evaluating Long-Term Capital Investments That Finds the Discount

question 117

Multiple Choice

The method of evaluating long-term capital investments that finds the discount rate that makes the net present value of the future inflows from a project exactly equal to the amount invested is the

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

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Definitions:

Milk Production

The biological process facilitated by the mammary glands, resulting in the secretion of milk to feed offspring.

ACTH

Adrenocorticotropic hormone, a pituitary hormone that stimulates the adrenal glands to secrete cortisol and other glucocorticoids.

Stress

A physical, mental, or emotional factor causing bodily or mental tension, which can stem from any event or thought that makes you feel frustrated, angry, or nervous.

Relaxation

The process of becoming less tensed or stressed, often referring to muscle easing from contraction.