Which Method of Evaluating Capital Investment Proposals Uses Present Value

question 173

Multiple Choice

Which method of evaluating capital investment proposals uses present value concepts to compute the rate of return from the net cash flows expected from capital investment proposals?

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

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Definitions:

Fight-Or-Flight

A physiological response to perceived threats, preparing the body to fight or flee.

Rest And Digest

Describes the activity of the parasympathetic nervous system, promoting a state of calm and supporting digestive and recuperative processes.

Memory

The faculty by which the mind stores and remembers information.

Cingulate Gyrus

A part of the brain situated in the medial aspect of the cerebral cortex, involved in processing emotions and behavior regulation.