Which Method(s)of Project Analysis Is(are)best Suited for Use by a Department

question 44

Multiple Choice

Which method(s) of project analysis is(are) best suited for use by a department manager who has no knowledge of time value of money but can estimate the cash flows of small projects with short lives fairly accurately?

• A)Payback
• B)Discounted payback
• C)Profitability index
• D)Net present value
• E)Either payback or profitability index

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Definitions:

Natural Selection

A basic process of evolution in which creatures that are more suited to their surroundings are more likely to survive and have a greater number of descendants.

A Priori

Knowledge or justification that is independent of experience, often based on logical deduction.

Genetic Differences

Variations in the DNA sequences among individuals, which contribute to the biological diversity and complexity of organisms, affecting traits from physical appearance to susceptibility to certain diseases.

Causal Relationships

A connection between two variables where a change in one directly causes a change in the other.