Which of the Following Methods Is Not One Used by Management

question 96

Multiple Choice

Which of the following methods is not one used by management in analysing the expected results of capital budgeting decisions?

• A)Payback method
• B)Future-value cash-flow method
• C)Discounted cash-flow method
• D)Accrual accounting rate-of-return method

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Definitions:

One Year

A period of time consisting of 12 months or 365 days, commonly used as a basis for calculating interest, returns, and performance metrics.

Issuing Securities

The process by which a corporation offers new stocks or bonds to the public or existing shareholders or bondholders.

Secondary Market

The financial market where investors purchase and sell securities they already own, as opposed to the primary market where securities are first issued.

Firms

Firms are business organizations engaged in commercial, industrial, or professional activities, typically comprised of a partnership or a corporation.