Which of the Following Capital Budgeting Techniques Does Not Adjust

question 178

Multiple Choice

Which of the following capital budgeting techniques does not adjust for the riskiness of the cash flows?

• A) IRR
• B) NPV
• C) MIRR
• D) Payback

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Definitions:

Wage and Price Controls

Government-imposed restrictions on the levels at which wages and prices can be set, usually to control inflation.

Inflation

A general increase in prices and decrease in the purchasing value of money.

Pure Capitalist Economy

An economic system characterized by private ownership of resources and the use of market mechanisms to allocate goods and services with minimal government intervention.

Government Role

The activities, responsibilities, and powers of a government in shaping society, economy, and ensuring public welfare.