Match Each Definition That Follows with the Term (A-F) It

question 145

Multiple Choice

Match each definition that follows with the term (a-f) it defines.
-Uses present value concepts to compute the rate of return on an investment from a capital investment proposal based on its expected net cash flows

• A)Capital rationing
• B)Annuity
• C)Capital investment analysis
• D)Internal rate of return method
• E)Payback period
• F)Accounting rate of return

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Definitions:

Typical

Representing the characteristics or qualities of a particular group, category, or class; characteristic.

Frequency Judgment

The process of estimating the rate at which an event occurs or the likelihood of its occurrence.

Availability

The extent to which a resource or service can be used or obtained.

Representativeness Heuristic

A cognitive shortcut used in decision making and judgments, where the likelihood of an object or event is assessed based on how closely it matches the typical case or stereotype.