Which of the Following Investment Rules May Not Use All

question 15

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:

Unearned Revenue

Revenue a business earns from selling products or services that have not yet been delivered to the buyer.

Tutoring Services

Educational support and personalized instruction provided by a tutor to help students improve their understanding and performance in specific subjects.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights.

Transactions

Business activities or events that involve the exchange of goods, services, money, or a promise of any of these.