If Only One Capital Budgeting Tool Were to Be Used

question 53

Multiple Choice

If only one capital budgeting tool were to be used to evaluate the project,which should it be?

• A)Payback
• B)Discounted payback
• C)Internal rate of return
• D)Profitability index
• E)Net present value

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Definitions:

Complex Job

Employment that involves multifaceted tasks requiring high levels of judgment, decision-making, and creativity.

Procrastinating

The act of delaying or postponing activities or tasks, often leading to stress, anxiety, or failure to achieve goals.

Productivity

The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.

Individual Control

The extent to which a person feels they have autonomy or influence over their own behavior and decisions.