In Addition to the NPV Rule That Is Used as an Investment

question 44

Multiple Choice

In addition to the NPV rule that is used as an investment decision rule,we also use the following rules for single,stand-alone projects within the firm:

• A) the payback rule, IRR rule, and EVA rule.
• B) the payback rule, discounted payback rule and ROE rule.
• C) the payback rule, ROE rule and ROA rule.
• D) the payback rule, IRR rule and ROI rule.

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Definitions:

Earthquakes

Natural phenomena caused by a sudden release of energy in the Earth's crust, leading to ground shaking and, in some cases, causing great destruction.

Volcanoes

Openings in the Earth's crust from which lava, ash, and gases erupt.

High Mountains

Elevated landforms reaching great heights above the surrounding terrain, often formed by tectonic processes like collision and rifting.

Transform Boundary

A plate boundary in which two tectonic plates move horizontally past one another.