Which Two Methods of Project Analysis Are the Most Biased

question 48

Multiple Choice

Which two methods of project analysis are the most biased towards short-term projects?

• A)net present value and internal rate of return
• B)internal rate of return and profitability index
• C)payback and discounted payback
• D)net present value and discounted payback
• E)discounted payback and profitability index

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Definitions:

Competitive Bidding

A procurement process where multiple providers submit bids for a contract, offering their best prices or proposals, with the aim of securing business by outcompeting others.

Fair Price

A price considered reasonable or justifiable for a product or service, often based on factors like cost, market demand, and ethical considerations.

Efficient Means

Methods or processes that maximize productivity and minimize waste, costs, or effort, leading to optimal performance or output.

Online Reverse Auctions

A type of auction in which sellers compete to obtain business by offering the lowest price for their goods or services, and the buyer selects from among these offers.