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

---

Definitions:

Expert Power

A form of influence that stems from an individual's recognized knowledge, skills, or experience in a specific area.

High Power Distance

A societal characteristic indicating how much individuals at lower levels of power within organizations and institutions recognize and anticipate that power will be allocated unevenly.

Legitimate Power

Is the authority that an individual or leader possesses due to their position or role within an organization, which is recognized and accepted by others.

High Power Distance

A cultural dimension describing societies where there is a significant gap between those in power and the less powerful individuals, often resulting in less questioning of authority.