Which One of the Following Methods of Project Analysis Is

question 104

Multiple Choice

Which one of the following methods of project analysis is defined as computing the value of a project based upon the present value of the project's anticipated cash flows?

• A)constant dividend growth model
• B)discounted cash flow valuation
• C)average accounting return
• D)expected earnings model
• E)internal rate of return

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Definitions:

Inelastic

Describes a situation where the demand or supply for a good or service is unresponsive to changes in price.

Equilibrium Quantity

The amount of goods or services available that matches the amount desired by consumers at the price where supply and demand balance.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Tax Imposition

The act of placing a financial charge or levy upon a taxpayer by a governmental organization.