A Capital Budgeting Model That Accounts for an Assumed Rate

question 22

Multiple Choice

A capital budgeting model that accounts for an assumed rate of return on interim-period cash inflows from an investment is the:

• A) Internal rate of return (IRR) model.
• B) Present-value payback period model.
• C) Net present value (NPV) model.
• D) Accounting rate of return (ARR) model.
• E) Modified internal rate of return (MIRR) model.

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