Which of the Following Is a Present Value Method of Analyzing

question 8

Multiple Choice

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

• A) Average rate of return
• B) Cash payback method
• C) Accounting rate of return
• D) Net present value

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Definitions:

Salary Allowance

A fixed amount or portion of an employee's salary allocated for specific expenses, often tax-exempt.