Which Two Methods of Project Analysis Are the Most Biased

question 48

Multiple Choice

Which two methods of project analysis are the most biased towards short-term projects?

• A)net present value and internal rate of return
• B)internal rate of return and profitability index
• C)payback and discounted payback
• D)net present value and discounted payback
• E)discounted payback and profitability index

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Definitions:

Service Charge

A fee collected for services provided, which may relate to banking, hospitality, or utilities.

Bank Statement

A monthly summary provided by a bank, detailing all transactions in a customer's account.

Interest

The cost of using borrowed money or the return on investment for savings and investments, usually expressed as a percentage.

Adjusted Cash Balance

The cash balance as per the company's records after making necessary adjustments for reconciling items with the bank statement.