Which of the Following Is a Capital Budgeting Technique That

question 3

Multiple Choice

Which of the following is a capital budgeting technique that converts a project's cash flows using a more consistent reinvestment rate prior to applying the Internal Rate of Return, IRR, decision rule?

• A)Discounted payback
• B)Net present value
• C)Modified internal rate of return
• D)Profitability index

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Definitions:

Reliable Test

A test that consistently produces the same results over time when given in the same conditions.

Validity

The extent to which a test or instrument measures what it is supposed to measure.

Internal Consistency

The degree to which items in a psychological test measure the same construct, indicating the reliability of the test.

Achievement Motivation

The driving force behind striving to succeed or meet standards of excellence.