The Three Main Methods of Capital Budgeting Are

question 77

Multiple Choice

The three main methods of capital budgeting are

• A) the weighted average cost of capital (WACC) method, the net present value (NPV) method, and the flow-to-equity (FTE) method.
• B) the weighted average cost of capital (WACC) method, the adjusted present value (APV) method, and the debt-to-equity (DTE) method.
• C) the weighted average cost of capital (WACC) method, the adjusted present value (APV) method, and the flow-to-equity (FTE) method.
• D) the weighted average cost of capital (WACC) method, the adjusted future value (AFV) method, and the flow-to-equity (FTE) method.

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Definitions:

Insurance Agents

Professionals who sell, solicit, and negotiate insurance policies on behalf of insurers, providing advice to buyers and managing the policy.

Proper Coverage

Adequate insurance protection or the extent to which insurance policies meet the insured's needs.

Clients' Losses

Refers to financial, physical, or reputational damage suffered by clients, possibly due to professional negligence or adverse market movements.

Surgeon Negligence

A failure by a surgeon to meet the standard of care expected in their profession, often leading to harm or injury to the patient.