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:

Full Employment Level

The level of employment where all available labor resources are being used in the most economically efficient way.

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The percentage of the labor force that is jobless and actively seeking employment, measured by government agencies to assess the economy's health.