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:

Obsessions

Persistent, unwanted thoughts, images, or impulses that cause significant distress or anxiety.

Delusions

Strongly held false beliefs or judgments, which are resistant to reason or confrontation with actual fact, often occurring as a symptom of psychiatric disorders.

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception.

Compulsions

Actions or thoughts repeatedly carried out by a person compelled by an obsession or by strict rules.