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:

Summarizing

Summarizing involves condensing larger texts or information into brief overviews, highlighting the main points or essential information.

Arouse Interest

Stimulate curiosity or engagement in something.

Validate Qualifications

To validate qualifications means to verify or affirm that someone has the stated credentials, skills, or experience.

Credibility

The quality or power of inspiring belief or trust in something or someone.