Which One of the Following Capital Budgeting Decision Models Consists

question 107

Multiple Choice

Which one of the following capital budgeting decision models consists of dividing the total initial investment outlay by annual after-tax cash inflows (when such inflows are assumed equal over time) ?

• A) Profitability index (PI).
• B) Payback period.
• C) Book (accounting) rate of return (ARR).
• D) Internal rate of return (IRR).
• E) Adjusted payback period.

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