All of the Following Capital Budgeting Tools Are Suitable for Non-Normal

question 30

Multiple Choice

All of the following capital budgeting tools are suitable for non-normal cash flows EXCEPT

• A) MIRR.
• B) profitability index.
• C) IRR.
• D) NPV.

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Definitions:

Lack of Due Care

The failure to act with the level of care that someone of ordinary prudence would have exercised under the same circumstances, leading to negligence.

Judge and Jury

Refers to the two distinct roles in a trial, where the judge oversees legal procedures, and the jury determines facts and delivers a verdict based on evidence.

Shifting Burden of Proof

A legal principle where the duty to prove or disprove a fact shifts from one party to another during the course of a legal proceeding.

Res Ipsa Loquitur

A legal doctrine that infers negligence from the very nature of an accident or injury in the absence of direct evidence on how any defendant behaved.