Which Methods of Evaluating a Capital Investment Project Use Cash

question 103

Multiple Choice

Which methods of evaluating a capital investment project use cash flows as a measurement basis?

• A)Net present value,accounting rate of return,and internal rate of return.
• B)Internal rate of return,payback period,and accounting rate of return.
• C)Accounting rate of return,net present value,and payback period.
• D)Payback period,internal rate of return,and net present value.
• E)Net present value,payback period,accounting rate of return,and internal rate of return.

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Definitions:

Event A

A generic term used to describe a particular outcome or set of outcomes within a probability space or experiment.

Event B

An occurrence or outcome within a statistical experiment to which a probability can be assigned.

Mutually Exclusive

A characteristic of events that cannot occur at the same time, indicating a clear separation or distinction between them.

Collectively Exhaustive

A property of a set of events that ensures all possible outcomes are covered, leaving no possibility out.