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:

Single Purpose

Designed or intended to fulfill only one specific function or task, without deviation or multipurpose utility.

Two-Party System

A political system dominated by two major parties, often limiting the presence or success of smaller or third parties.

Legislative Chamber

A formal assembly or room where a legislature meets to discuss and make laws.

Majority

The greater part or number; the number of votes, seats, or individuals in a group that is more than half of the total count.