How Is Depreciation Handled by the Following Capital Budgeting Techniques

question 154

Multiple Choice

How is depreciation handled by the following capital budgeting techniques? (Ignore income taxes in this problem.)
$\begin{array}{|l|l|l|}\hline \text { Internal Rate of Return } & \text { Simple Rate of Return } & \text { Payback } \\\hline \text { A) Excluded } & \text { Included } & \text { Excluded } \\\hline \text { B) Included } & \text { Excluded } & \text { Included } \\\hline \text { C) Excluded } & \text { Excluded } & \text { Included } \\\hline\end{array}$
$\begin{array}{|l|l|l|}\hline \text {D) Included }&\text { Included}&\text {Excluded }\\\hline \end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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