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:

Practices Versus Values

The comparison between what people actually do (practices) and what they believe to be important (values).

Low Degree

Describes a state or condition that is minimal or relatively small in extent, intensity, or degree.

Global

Relating to or encompassing the entire world, often used in the context of business, economy, or environmental issues.

Charismatic/Value Based

Leadership that inspires and motivates followers through personal charm, conviction, and the ability to communicate a compelling vision or values.