What Is the Most Widely Used Non-Discounting Model for Capital

question 19

Multiple Choice

What is the most widely used non-discounting model for capital investment decision making?

• A) payback period
• B) net present value
• C) internal rate of return
• D) accounting rate of return

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Definitions:

Decision Maker's Interpretation

The process by which an individual who is responsible for making decisions perceives and understands information relevant to decision making.

Concentration Of Effect

A concept where actions or interventions are focused in a particular area or aspect to achieve significant impact or results.

Distributive Justice

The perceived fairness of the distribution of resources, benefits, and burdens within a society or group.

Equitably

In a fair and impartial manner, ensuring justice or equality.