Which of the Following Methods of Project Analysis Are Biased

question 103

Multiple Choice

Which of the following methods of project analysis are biased towards short-term projects?
I.internal rate of return
II.accounting rate of return
III.payback
IV.discounted payback

• A)I and II only
• B)III and IV only
• C)II and III only
• D)I and IV only
• E)II and IV only

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Definitions:

National Security

National security involves the safety and defense of a nation, including its citizens, economy, and institutions, protected against threats ranging from terrorism to foreign invasions.

Infant Industries

Newly established industries often with limited capabilities compared to established competitors, and potentially protected by a government until they become competitive.

Absolute Advantage

The ability of a country or entity to produce a good or service in a more efficient manner (with fewer resources or in less time) than other countries or entities.

Opportunity Cost of Production

The value of the best alternative use of resources that could have been used for producing something else.