The Three Common Discounted Cash Flow Methods Are Net Present

question 21

True/False

The three common discounted cash flow methods are net present value, internal rate of return, and payback.

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Definitions:

Type I Error

An error that occurs in hypothesis testing when a true null hypothesis is incorrectly rejected.

Type II Error

Occurs when a false null hypothesis is not rejected, meaning a real effect or difference is missed in a study or test.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, typically to be tested against an alternative hypothesis.

Acquitting

The legal act of freeing an individual from a charge of an offence by a verdict of not guilty.