With Respect to the Capital Budgeting Practices of Large U

question 93

Multiple Choice

With respect to the capital budgeting practices of large U. S. corporations

• A) the profitability index has been gaining in popularity.
• B) IRR and NPV have been gaining in popularity.
• C) payback and discounted payback have been gaining in popularity.
• D) IRR and NPV have declined in popularity.

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Definitions:

Probability

A measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1.

Hypergeometric Probability

A statistical measure that calculates the likelihood of obtaining a specific number of successes from a finite population without replacement.

Discrete Random Variable

A variable that takes on a countable number of distinct values, often resulting from counting processes.

With Replacement

In sampling, "with replacement" means that once an item is selected, it's put back into the population before the next selection, making it possible to be chosen again.