Which of the Following Capital Budgeting Methods Is Based on Cash

question 9

Multiple Choice

Which of the following capital budgeting methods is based on cash flows, profitability, and the time value of money?

• A) Payback and accounting rate of return
• B) Payback and net present value
• C) Accounting rate of return and internal rate of return
• D) Net present value and internal rate of return

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Definitions:

Referent Power

A form of influence based on identification with, attraction to, or respect for the leader.

Expert Power

Expert power is a form of influence based upon the perception of special knowledge, skills, or expertise that an individual possesses.

Automatic Thinking

The process of making quick, instinctive judgments and responses without conscientious deliberation, often based on learned behaviors or biases.

Mindful Thinking

Involves maintaining a moment-by-moment awareness of our thoughts, feelings, bodily sensations, and surrounding environment with openness and non-judgment.