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:

Six-figure Accuracy

A level of precision where calculations or measurements are correct to six digits.

Cube Root

The number that produces a given number when cubed. It is the value that, when multiplied by itself three times, gives the original number.

Six-figure Accuracy

Refers to a level of precision in numerical calculations or measurements that includes six digits.

Pair Of Equations

Two equations that are solved together to find a common solution.