Which Capital Budgeting Technique Is Preferred in All Major Industrialized

question 1

Multiple Choice

Which capital budgeting technique is preferred in all major industrialized countries?

• A) Net present value
• B) Internal rate of return
• C) Payback period
• D) There is no particular preferred capital budgeting technique across countries

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Definitions:

Equity Firm

A company that invests in businesses, typically taking a sizable stake, with the goal of increasing value over time before eventually divesting.

Borrowing

This is the act of obtaining funds from a lender under the agreement to pay back the principal amount along with interest.

Repurchase

The act of buying back goods or securities that were previously sold, often referring to a company buying back its own shares.

Equity Firm

A company that invests its clients' funds in businesses, typically acquiring significant control or full ownership.