Which of the Following Factors Is Least Important to Capital

question 42

Multiple Choice

Which of the following factors is least important to capital budgeting decisions?

• A) The time value of money
• B) The risk-return tradeoff
• C) Net income based on accrual accounting principles
• D) Cash flows directly resulting from the decision

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Definitions:

Evaluation Apprehension

Concern that others are evaluating our behavior.

Social Pressure

The influence exerted by society or a group of people on an individual, encouraging conformity to certain behaviors, norms, or values.

Diffusion of Responsibility

A psychological phenomenon where people are less likely to take action or feel a sense of responsibility in the presence of a large group of people.