For What Reason Are the Net Present Value and Internal

question 101

Multiple Choice

For what reason are the net present value and internal rate of return methods of capital budgeting superior to the payback method?

• A) Both the methods are easier to implement.
• B) Both the methods consider the time value of money.
• C) Both the methods require less input.
• D) Both the methods reflect the effects of depreciation and income taxes.

---

Definitions:

Authority Figures

Individuals recognized by others for having power or control, often in specific social, legal, or familial roles, and capable of influencing behavior.

Kohlberg's Theory

A psychological approach proposing stages of moral development in individuals, focusing on the evolution of moral reasoning over time.

Post-Conventional

A stage in Kohlberg's theory of moral development where individuals make decisions based on universal principles and the rights of others.

Morality

Principles concerning the distinction between right and wrong behavior and the goodness or badness of human character.