Which of the Following Capital Budgeting Methods Might Not Consider

question 54

Multiple Choice

Which of the following capital budgeting methods might not consider the salvage value of a machine being considered for purchase?

• A) Internal rate of return.
• B) Net present value.
• C) Payback.
• D) Discounted payback.
• E) Answers c and d are both correct.

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Definitions:

Obsessive-Compulsive Personality Disorder

A psychological condition marked by a consistent focus on maintaining neatness, striving for perfection, and dominating personal and social interactions, which comes at the cost of being flexible, open, and productive.

Negative Affectivity

A personality characteristic that involves the experience of negative emotions and poor self-concept.

Schizotypal Personality Disorder

Chronic pattern of inhibited or inappropriate emotion and social behavior as well as aberrant cognitions and disorganized speech.

Psychoticism

A personality trait marked by aggressiveness, impulsivity, and a lack of empathy, often associated with risk for psychotic disorders.