Asked by Alfred Lopez on Jun 30, 2024
Verified
Which of the following is not a common method of capital budgeting?
A) Gross profit method
B) Payback method
C) Discounted cash flow method
D) Annual rate of return method
Gross Profit Method
An inventory estimation technique that calculates cost of goods sold and ending inventory based on the gross profit margin.
Capital Budgeting
The process of planning and evaluating investments in long-term assets.
Payback Method
A capital budgeting technique that calculates the time needed to recoup the investment cost through net cash flows.
- Identify the elements and importance of capital budgeting.
Verified Answer
Learning Objectives
- Identify the elements and importance of capital budgeting.
Related questions
If the Payback Period for a Project Is Greater Than ...
When Using the Payback Method Payback Is Expressed in Terms ...
The Process of Analyzing Alternative Long-Term Investments and Deciding Which ...
________ Is the Process of Analyzing Alternative Long-Term Investments and ...
Capital Budgeting Decisions Are Risky Because All of the Following ...