Which Methods of Project Analysis Are Most Biased Towards Short-Term

question 62

Multiple Choice

Which methods of project analysis are most biased towards short-term projects?

• A)Net present value and internal rate of return
• B)Payback and discounted payback
• C)Accounting rate of return and internal rate of return
• D)Payback and accounting rate of return
• E)Internal rate of return and discounted payback

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Definitions:

Risk of Profit

The possibility of encountering losses or gains in financial investments due to market fluctuations.

Control

The power or authority to manage, direct, or govern individuals, organizations, or systems.

Indefinite Hiring

An employment arrangement without a predetermined end date, typically at will and subject to termination by either party with notice.

Unjust Dismissal

The unwarranted termination of an employee in violation of legal or contractual obligations.