The Capital Budgeting Decision Model That Utilizes All the Discounted

question 94

Multiple Choice

The capital budgeting decision model that utilizes all the discounted cash flow of a project is the ________ model,which is one of the single most important models in finance.

• A)net present value (NPV)
• B)internal rate of return (IRR)
• C)profitability index (PI)
• D)discounted payback period

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Definitions:

Import Protections

Measures such as tariffs and quotas that countries implement to protect their domestic industries from foreign competition.

Consumer Surplus

The disparity between the amount consumers are prepared to spend on a product or service and the actual price they pay.

Import-Competing Industries

Sectors within an economy that produce goods or services in direct competition with imports, often affected by trade policies.

Comparative Advantage

The capacity of a person, business, or nation to generate a product or service with a lesser opportunity cost compared to rivals.