alleryStart learning →Which four measurement methods are named for capital investment decisions?
APayback, ARR, NPV, IRR
BDebit, credit, ledger, trial
CCash, accrual, hybrid, cost
DFixed, variable, mixed, step
Answer & Solution
Correct answer: A. Payback, ARR, NPV, IRR
1. Capital budgeting has a standard toolkit.
2. A capital investment decision is a common occurrence for companies.
3. Common measurement methods include the payback method and accounting rate of return.
4. Net present value and internal rate of return complete the list.
_Source: OpenStax Principles of Accounting, Volume 2: Managerial Accounting (CC BY-NC-SA 4.0), Ch 11 'Capital Budgeting Decisions'_
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Related questions
Complete the capital budgeting rulesMatch each capital budgeting methodStack the capital budgeting termsSort the capital budgeting methodsPull the rope to the right method familyChoosing a project on payback alone risks favouring one that repays quickly but earns:Of the four named methods, how many account for the time value of money?The payback method's focus on recouping an investment makes it primarily a measure of: