If a Manager Were Concerned with the Time Value of Money

question 148

Multiple Choice

If a manager were concerned with the time value of money, from which two capital budgeting methods should the manager choose?

• A) IRR or Payback.
• B) BET or IRR.
• C) BET or Payback.
• D) NPV or ARR.
• E) NPV or Payback.

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Definitions:

SWOT Analysis

A strategic planning tool used to identify an organization's Strengths, Weaknesses, Opportunities, and Threats.

Opportunities

Circumstances or situations that present potential for growth, improvement, or benefit, often requiring timely action to capitalize on them.

Grand Strategy

A comprehensive, long-term plan of essential actions by which an organization seeks to achieve its major objectives.

Mission Statement

A concise declaration describing the aspirations and ethics of an enterprise, organization, or person.