Which of the Following Capital Budgeting Techniques Makes the Assumption

question 27

Multiple Choice

Which of the following capital budgeting techniques makes the assumption that the project's cash flows are reinvested at the firms required rate of return?

• A)traditional payback period (PB)
• B)internal rate of return (IRR)
• C)discounted rate of return
• D)discounted payback period (DPB)
• E)net present value (NPV)

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Definitions:

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the rest of the body and returns carbon dioxide to be exhaled.

Oxygen

A chemical element (O) that is a highly reactive nonmetal, essential for most forms of life on Earth, and a key component of the atmosphere.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, absorbed by plants in photosynthesis.

Carbonic Acid

A weak acid formed in solution when carbon dioxide reacts with water (H2CO3).