Given the Following List of Patterns of Expenditure Timing,indicate the Correct

question 2

Multiple Choice

Given the following list of patterns of expenditure timing,indicate the correct ordering of their resulting internal rates of return (IRRs ) from lowest to highest.
I.Typical spending pattern.
II.Spending evenly over cycle.
III.Optimally timed asset purchases.
IV.Optimally timed capital spending.

• A)I,II,III,IV.
• B)II,I,IV,III.
• C)II,I,III,IV.
• D)I,II,IV,III.

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Definitions:

Operating Income

Earnings generated from a company's core business operations, excluding expenses and revenues that are not related to the primary activities.

Variable Costs

Variable costs are expenses that change in proportion to the activity of a business, such as sales volume or production levels.

Operating Income

The profit realized from a business's core operational activities, excluding deductions of interest and tax.

Unit Selling Price

The amount of money charged for each individual unit of a product or service.