If Only One Capital Budgeting Technique Could Be Used to Evaluate

question 33

Multiple Choice

If only one capital budgeting technique could be used to evaluate a project,which of the following would be the most preferred?

• A) Payback
• B) IRR
• C) MIRR
• D) Profitability index
• E) NPV

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Definitions:

Equal-Variances T-Test

A statistical test comparing the means of two independent samples, based on the assumption that both groups have similar variances.

F-Test

A statistical test used to compare the variances of two populations to see if they are significantly different.

Breaking Strength

The maximum amount of stress or force a material can withstand before it breaks or fails.

Mean Breaking Strength

The average force required to break a material or object under tension tests.