All of the Investment Appraisal Methods Below Use Cash Flows

question 2

Multiple Choice

All of the investment appraisal methods below use cash flows exclusively except:

• A)accounting rate of return.
• B)payback.
• C)internal rate of return.
• D)net present value.

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Definitions:

Aggregate Demand Curve

A graphical representation showing the relationship between the overall price level and the total demand for goods and services in an economy.

Aggregate Supply Curve

A graph that shows the relationship between the overall price level in the economy and the total output produced by firms, holding all else constant.

Price Level

Price Level is a measure of the average prices of goods and services in an economy, indicating the purchasing power of the currency and cost of living.

Real GDP

Real GDP, or Gross Domestic Product adjusted for inflation, measures the value of all final goods and services produced within a country in a given period, accounting for changes in price level.