Which Two Methods of Project Analysis Were the Most Widely

question 27

Multiple Choice

Which two methods of project analysis were the most widely used by CEO's as of 1999?

• A)net present value and payback
• B)internal rate of return and payback
• C)net present value and average accounting return
• D)internal rate of return and net present value
• E)payback and average accounting return

---

Definitions:

Lifetime Earnings

The total amount of money a person is expected to earn over the course of their career.

Marginal Cost

The charge incurred from the production of an extra unit of a product or service.

Ring Tones

Digital files used on mobile phones to indicate an incoming call or message.

Efficient Market

A market theory that suggests all available information is already reflected in stock prices, hence investments cannot consistently outperform the market.