Which of the Following Investment Rules May Not Use All

question 58

Multiple Choice

Which of the following investment rules may not use all possible cash flows in its calculations?

• A)NPV
• B)payback period
• C)IRR
• D)profitability index

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Definitions:

Adapt

The process of adjusting or changing to become suitable for a new environment or conditions.

Intense Stimuli

External or internal factors that have a strong impact on the sensory or psychological experience of an individual, often leading to a significant reaction or response.

Signal Detection

A theory and method for quantifying the ability to discern between information-bearing patterns and random patterns that distract from the information.

Naysayers

Individuals who are often negative or skeptical about ideas and refuse to believe that something might be successful or positive.