Which of the Following Is a Method of Analyzing Capital

question 2

Multiple Choice

Which of the following is a method of analyzing capital investment proposals that ignores present value?

• A) Internal rate of return
• B) Net present value
• C) Discounted cash flow
• D) Average rate of return

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Definitions:

Chi-square Distribution

A probability distribution commonly used in statistical significance tests.

Quantity

A property that can exist as a multitude or magnitude, often measured and expressed as a number.

Confidence Interval

A range of values derived from sample data that is likely to contain the value of an unknown population parameter, with a specified level of confidence.

Population Variance

The measurement of how data points in an entire population are spread out from the mean of the population.