Examples of sophisticated capital budgeting techniques include all of the following EXCEPT
A) a discounted payback period.
B) the net present value.
C) an internal rate of return.
D) a payback period.

Question

Quizplus · Accepted Answer

The question asks for capital budgeting techniques that are sophisticated, which means they go beyond simple metrics like the payback period. Therefore, the correct answer is D, as the payback period is a simple metric that does not take into account the time value of money. The other options (discounted payback period, net present value, and internal rate of return) are all more sophisticated techniques that do take into account the time value of money, making them better suited for complex capital budgeting decisions.

Examples of Sophisticated Capital Budgeting Techniques Include All of the Following