All of the Following Capital Budgeting Tools Are Suitable for Firms

question 72

Multiple Choice

All of the following capital budgeting tools are suitable for firms facing time constraints except ______.

• A) NPV
• B) Payback
• C) Discounted payback
• D) All of these answers are suitable for firms facing time constraints.

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Definitions:

Risk Taker

An individual or entity that is willing to take on risk in pursuit of reward, often in the context of business or investment.

Private Enterprise

Businesses that are owned and operated by private individuals or groups, rather than being controlled or owned by the government.

Tolerate Ambiguity

Tolerating ambiguity refers to the ability to remain productive and calm when situations are uncertain or unclear.

Financial Success

The achievement of financial objectives and stability, often characterized by an individual's or organization's ability to generate and manage wealth effectively.