If You Want to Review a Project from a Benefit-Cost

question 68

Multiple Choice

If you want to review a project from a benefit-cost perspective,you should use the _______ method of analysis.

• A) net present value
• B) payback
• C) internal rate of return
• D) average accounting return
• E) profitability index

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Definitions:

Quarterly Dividend

A dividend payment made by a company to its shareholders every three months, representing a portion of the earnings.

Compounded Quarterly

A method of calculating interest where the interest earned on an investment is calculated four times a year and added to the principal sum, leading to interest calculations on interest in subsequent periods.

Future Value Factor

A formula used to determine the future value of an investment based on its current value and rate of return.

Annuity

A fiscal instrument providing a constant flow of payments to a person, mainly serving as a source of income for individuals in retirement.