Many Firms Today Continue to Use the Payback Method but Employ

question 68

True/False

Many firms today continue to use the payback method but employ the NPV or IRR methods as secondary decision methods of control for risk.

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Definitions:

Standard Deviations

A measure that quantifies the amount of variation or dispersion of a set of numerical values.

Distribution

In statistics, it refers to the way in which data or values are spread out or distributed across a range of possibilities.

Z Score

A statistical measure illustrating the relation of a value to the mean of its group by detailing it in standard deviations from the mean.

Extreme

Relating to values that are farthest from the mean or median in a data set, often considered outliers.