Which of the Following Is the Best Example of a Modified-Rebuy

question 93

Multiple Choice

Which of the following is the best example of a modified-rebuy situation?

• A) the purchase of three large-screen monitors to replace smaller screens
• B) the monthly updating of computer virus protection
• C) bidding on a new high school multipurpose gymnasium to replace one built in 1963
• D) the annual purchase of calendar refills for the desks of all company executives

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Definitions:

Cash Payback Period

The time it takes for a business to recuperate its investment in a project, measured by the flow of cash into the organization.

Net Present Value Method

A method used to evaluate investments by calculating the difference between the present value of cash inflows and outflows over a period of time.

Average Rate

Typically refers to the mean value or norm of a variable rate over a specified period, such as interest rates or exchange rates.

Capital Investment Proposals

Plans or suggestions for allocating resources towards long-term assets in hopes of gaining future returns.