Which of the Following Are Two Methods of Analyzing Capital

question 22

Multiple Choice

Which of the following are two methods of analyzing capital investment proposals that both ignore present value?

• A) internal rate of return and average rate of return
• B) net present value and average rate of return
• C) internal rate of return and net present value
• D) average rate of return and cash payback method

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Definitions:

Bank Overdrafts

A facility provided by a bank allowing an account holder to withdraw more money than is available in their account, often used as a form of short-term financing.

Goodwill Calculation

The process used to assess the premium paid over the fair market value of the assets during the acquisition of a company.

Form 20-F

A form used by foreign companies to report their financial performance and operational activities to the U.S. Securities and Exchange Commission.

Annual Report

A comprehensive report on a company's activities and financial performance throughout the preceding year.