Which of the Following Methods Is Described as Follows: "It

question 151

Multiple Choice

Which of the following methods is described as follows: "It calculates the expected monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time using the required rate of return"?

• A) payback method
• B) accrual accounting rate-of-return method
• C) internal rate of return
• D) net present value method

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Definitions:

Variable

An element, feature, or factor that is likely to vary or change; often used in scientific experiments or mathematical equations.

Rainfall

The amount of rain that falls over a specific area in a given period of time, often measured in millimeters.

Average

A statistical measure representing the central or typical value in a set of data, calculated primarily as the mean, median, or mode.

Total

It refers to the whole amount, quantity, or number of something, considered without divisions or exceptions.