If a Firm Is More Concerned About the Quick Return

question 96

Multiple Choice

If a firm is more concerned about the quick return of its initial investment than it is about the amount of value created,then the firm is most apt to evaluate a capital project using the ________ method of analysis.

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

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Definitions:

External Electronic Devices

Devices that connect to a computer system from outside, such as printers, mice, or external hard drives.

Internal

Pertaining to or situated within the confines of an organization, system, or device, often indicating processes or operations not exposed to the external environment.

Permanent

A characteristic of something that is intended to last or continue indefinitely, without change or cessation.

Internet Service Provider

A company that offers users access to the Internet, often also providing related services such as web hosting and email.