The Most Commonly Used Methods in the Evaluation of Capital

question 27

True/False

The most commonly used methods in the evaluation of capital investment proposals are net present value method,payback period method,and the accounting rate-of-return method.

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Definitions:

Random Sample

A subset of individuals chosen from a larger set, where each individual has an equal probability of being chosen, ensuring the sample’s representation of the entire population.

Without Replacement

A sampling method where each selected unit is not put back into the population before the next draw, meaning no unit can be selected more than once.

Units

Fundamental quantities or measurements in terms of which other quantities are expressed in a system of measurement.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space if these events occur with a known constant rate and independently of the time since the last event.