Which of These Is a Capital Budgeting Technique That Generates

question 102

Multiple Choice

Which of these is a capital budgeting technique that generates decision rules and associated metrics for choosing projects based upon the implicit expected geometric average of a project's rate of return?

• A) Discounted payback
• B) Net present value
• C) Internal rate of return
• D) Profitability index

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Definitions:

Periodic Inventory System

An inventory accounting system where updates to the inventory account occur at specific intervals, such as monthly or annually, rather than continuously.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products or providing its services.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, also known as net earnings or net profit.