Capital Investment Proposals May Not Be Evaluated by Using

question 9

Multiple Choice

Capital investment proposals may not be evaluated by using:

• A)The payback period.
• B)The return on investment method.
• C)The discounted cash flow method.
• D)The income statement method.

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Definitions:

Unbiased Estimates

Statistical estimates or predictions that are accurate on average over a number of samples.

Sample Size

The number of observations or data points used in a sample for the purposes of statistical analysis.

Mean Deviation

A measure of the average distance between each data point in a set and the mean of the data set, reflecting the dispersion or spread.

Deviations

Differences between observed values and some reference value, often the mean of the set.