Which of the Following Statements Is Incorrect

question 34

Multiple Choice

Which of the following statements is incorrect?

• A) Discounted cash flow techniques explicitly recognise the time value of money.
• B) Payback recognises the time value of money.
• C) Accounting rate of return recognises the time value of money.
• D) Payback recognises the time value of money AND accounting rate of return recognises the time value of money.

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Definitions:

T-test

A statistical test used to compare the means of two groups or test a single mean against a known value.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it defines the cutoff between significance and non-significance.

Null Hypothesis

A hypothesis that suggests there is no significant difference between specified populations, or no association among groups.

Null Hypothesis

A statistical hypothesis that assumes no effect or no difference in an experiment or study, serving as the default assumption to be tested.