The Decision Technique That Measures the Estimated Performance of a Capital

question 146

Multiple Choice

The decision technique that measures the estimated performance of a capital investment by dividing the project's annual after-tax income by the average investment cost is called the:

• A)Break-even point for the project.
• B)Internal rate of return on the proposed investment.
• C)Accounting (book)rate of return on the investment.
• D)Capital asset pricing model.
• E)Profitability index (PI)for the investment.

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Definitions:

Anomie Theory

The theory that deviant behavior arises when people striving to achieve culturally valued goals find they do not have access to the legitimate means of attaining these goals.

Education

The process of receiving or giving systematic instruction, especially at a school or university, or the knowledge and skills acquired through this process.

Deviant Behavior

Behavior that violates the norms that apply in a given situation.

Secondary Deviance

Deviant behavior employed by a person as a means of defense or adjustment to the problems created by others’ reactions to rule breaking by him or her.