A Capital Budgeting Tool That Management Can Use to Summarise

question 98

Multiple Choice

A capital budgeting tool that management can use to summarise the difference in the future net cash inflows from an intangible asset at two different points in time is referred to as:

• A)the net present value method.
• B)the payback method.
• C)the accrual accounting rate-of-return method.
• D)sensitivity analysis.

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Definitions:

Sympathetic

Relates to the part of the autonomic nervous system that prepares the body for intense physical activity and is often referred to as the fight-or-flight response.

Parasympathetic

Part of the autonomic nervous system responsible for relaxing the body and conserving energy.

Endocrine System

A network of glands in the body that secrete hormones directly into the circulatory system to regulate the body's growth, metabolism, and sexual development and function.

Hormones

Chemical messengers produced by glands in the body, which travel through the bloodstream to regulate various physiological processes and behaviors.