How Is Depreciation Handled by the Following Capital Budgeting Techniques

question 63

Multiple Choice

How is depreciation handled by the following capital budgeting techniques? (Ignore income taxes in this problem.)

$\begin{array} { l l l l } \begin{array} { c } \text { Internal } \\\text { Rate of Return }\end{array} & { \begin{array} { c } \text { Simple } \\\text { Rate of Return }\end{array} } & \underline { \text { Payback } } \\\text { A) Excluded } & \text { Included } & \text { Excluded } \\\text { B) Included } & \text { Excluded } & \text { Included } \\\text { C) Excluded } & \text { Excluded } & \text { Included } \\\text { D) } \text { Included } & \text { Included } & \text { Excluded }\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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