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

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter15: Harvesting The Business Venture Investment

Section: Chapter Questions

Problem 20DQ

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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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Step 1: Define=Capital budgeting

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