Answered: Which of the following techniques for…

Which of the following techniques for deciding on taking a project has the criteria for acceptance or rejection determined by the management of the firm? a. Payback b. Pl c. NPV d. IRR

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 11DQ: Explain how the NPV is used to determine whether a project should be accepted or rejected.

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Concept explainers

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.

Question

Which of the following techniques for deciding on taking a project has the criteria for acceptance or rejection determined
by the management of the firm?
a. Payback
b. Pl
c. NPV
d. IRR

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