While ________ Method Is the Most Reliable Method When Evaluating

question 17

Multiple Choice

While ________ method is the most reliable method when evaluating an acquisition investment,real-world practitioners often use ________ and ________ as alternative valuation metrics.

• A) the NPV; the IRR; the cash multiple (or multiple of money)
• B) the IRR; the NPV; the cash multiple (or multiple of money)
• C) the cash multiple; the NPV; the IRR
• D) none of the above

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Definitions:

Estimated Regression

A statistical method used to predict the value of a dependent variable based on the values of one or more independent variables.

SSR

Sum of Squares due to Regression, a measure in statistics used to quantify the variance explained by a regression model.

Least Squares

A mathematical method used to find the best-fitting line through a set of points by minimizing the sum of the squares of the distances from the points to the line.