Of the Following Capital Budgeting Decision Criteria, Which Does NOT

question 25

Multiple Choice

Of the following capital budgeting decision criteria, which does NOT use discounted cash flows?

• A) net present value
• B) internal rate of return
• C) accounting rate of return
• D) All of these techniques typically use discounted cash flows.

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Definitions:

American Dream

The ideal that every US citizen should have an equal opportunity to achieve success and prosperity through hard work, determination, and initiative.

Political Appointments

Positions given within the government based on political affiliation or support rather than through a merit-based or competitive process.

Rule of Reason

A legal doctrine used in antitrust law that evaluates the legality of business practices based on their actual competitive impact, including circumstances and rationale.

Herfindahl Index

A measure used in competition law and antitrust analysis, calculated by summing the squares of the market shares of all firms within an industry.