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.