Which of the Following Figures of Merit Might Not Use

question 3

Multiple Choice

Which of the following figures of merit might not use all possible cash flows in its calculations?
I.Payback period
II.Internal rate of return
III.Net present value (NPV)
IV.Benefit-cost ratio

• A) III only
• B) I & III only
• C) II & III only
• D) I only
• E) III & IV only

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Definitions:

Information Processing

The process through which information is interpreted, stored, and retrieved by the brain or a computer system.

Encoding

The set of mental operations that people perform on sensory information to convert that information into a form that is usable in the brain’s storage systems.

Retrieval

The act of retrieving and making conscious previously stored memory information.

Encoding

The process of converting information into a form that can be stored in memory.