Which of the Following Capital Budgeting Methods Is Based on Cash

question 94

Multiple Choice

Which of the following capital budgeting methods is based on cash flows,profitability,and the time value of money?

• A)Payback and accounting rate of return
• B)Payback and net present value
• C)Accounting rate of return and internal rate of return
• D)Net present value and internal rate of return

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Definitions:

Legal Remedy

The means by which a court enforces a right, imposes a penalty, or makes another court order to impose its will.

Limited Warranty

A warranty that does not meet all of the requirements of a full warranty.

Full Warranty

A warranty under which a defective product will be repaired or replaced without charge.

Requirements

Specified necessities or criteria that must be met or complied with.