Net Present Value Method, Payback Period Method and Accounting Rate

question 31

True/False

Net present value method, payback period method and accounting rate of return method are the three important decision variables used in the evaluation of proposals.

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Definitions:

Magnitude

A numerical value assigned to the size or amount of a physical quantity (such as force, mass, or electric current) without regard to its direction.

Direction

A course along which someone or something moves.

Right Triangle

A triangle that contains a right angle.

90 °

In electrical terms, this often refers to a phase shift of 90 degrees, which is a quarter of a cycle in alternating current (AC) or signal waveforms, representing a right angle in geometric terms.