2D2A THE FOLLOWING METHODS ARE USED TO EVALUATE CAPITAL INVESTMENT PR...

339.

CSO: 2D2c

LOS: 2D2a

The following methods are used to evaluate capital investment projects.

• Internal rate of return

• Average rate of return

• Payback

• Net present value

Which one of the following correctly identifies the methods that utilize discounted cash-

flow (DCF) techniques?

Internal Rate

Average Rate

Net Present

of Return

of Return

Payback

Value

a.

Yes

Yes

No

No.

b.

No

No

Yes

Yes.

c.

Yes

No

Yes

No.

d.

Yes

No

No

Yes.