Which of the Following Capital Budgeting Models Is Most Likely

question 56

Multiple Choice

Which of the following capital budgeting models is most likely to be used if a company's goal is to maximise their operating profit?

• A) Net present value
• B) Rate of return
• C) Payback
• D) Internal rate of return

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Definitions:

Organizations

Entities, either public or private, constructed for a specific purpose, characterized by structures and efforts towards collective goals.

Vertical Communication

Messages that are communicated according to an organization’s chain of command by flowing both upward and downward.

Organizations

Entities comprising multiple people working together towards common objectives, structured to coordinate their activities and resources.

Communication Habits

Patterns or practices of behavior in how individuals communicate with others, which can be beneficial or detrimental.