Which of the Following Is the ONLY Capital Budgeting Method

question 33

Multiple Choice

Which of the following is the ONLY capital budgeting method which uses accrual accounting information?

• A) Payback period
• B) Rate of return (ROR)
• C) Net present value (NPV)
• D) Internal rate of return (IRR)

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Definitions:

Distrust Technology

The skepticism or reluctance to use or depend on technological systems or devices, often due to concerns over privacy, security, or authenticity.

Employee Base

The collective group of employees working in an organization or business.

Conversion Risk

The uncertainty associated with changing one form of currency to another, which may result in financial loss due to fluctuating exchange rates.

Behavioral Feasibility

Assesses whether the people and organizational culture will adapt to changes required by a proposed system or project.