Which Method of Evaluating Capital Investment Proposals Uses the Concept

question 72

Multiple Choice

Which method of evaluating capital investment proposals uses the concept of present value to compute a rate of return?

• A)Average rate of return
• B)Internal rate of return
• C)Cash payback period
• D)Accounting rate of return

---

Definitions:

Public Good

Services or products offered freely to the whole of a community, delivered by the government or by non-profit organizations and individuals, without seeking profit.

Majority Vote

A decision rule where more than half of the participants need to agree on a proposal for it to be approved.

Paired-Choice Vote

A voting method in which participants are presented with pairs of options and choose their preference within each pair, often used to rank preferences or make decisions.

Ranked Preferences

Ordering alternatives based on their desirability from most to least preferred.