Which of the Following Is a Technique for Evaluating Capital

question 60

Multiple Choice

Which of the following is a technique for evaluating capital projects that is particularly useful when firms face time constraints in repaying investors?

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

---

Definitions:

Touchscreens

Input devices that allow users to interact with electronic devices by touching the screen directly.

Compensation Cost

The total amount an employer spends on an employee's salary, benefits, and other forms of remuneration.

Average Cost

The total cost of production divided by the number of units produced.

Hidden-cost Fallacy

This fallacy occurs when not all costs associated with a decision or action are considered, leading to an underestimation of the true cost.