All of the Following Capital Budgeting Tools Are Suitable for Firms

question 12

Multiple Choice

All of the following capital budgeting tools are suitable for firms facing time constraints EXCEPT:

• A)NPV.
• B)payback.
• C)discounted payback.
• D)All of these answers are suitable for firms facing time constraints.

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Definitions:

Labor Decreases

A situation where the workforce or the amount of work done decreases due to factors like automation, layoffs, or economic downturns.

Retain Earnings

Profits that a company keeps after dividends have been paid out to shareholders, often used for reinvestment in the business.

Dividends

Distributions of earnings given by a company to its stockholders, typically from the profits made.

Labor Supply Curves

Graphical representation showing the relationship between different wage levels and the quantity of labor workers are willing to supply, generally sloping upwards indicating that higher wages attract more labor.