According to One Study Done Some Time Ago, Most Small

question 87

Multiple Choice

According to one study done some time ago, most small firms use the _____ method to evaluate capital projects.

• A)NPV
• B)IRR
• C)payback
• D)PI

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Definitions:

Net Inventory Investment

The change in the total value of inventories in an economy during a specific period.

Positive

An attribute or condition that reflects an increase, improvement, or favorable outcome.

Gross Investment

The total amount of capital invested in a firm, including replacements for depreciation and new investments for expansion.

Net Investment

The difference between total investment in an economy and the depreciation of capital.