A set of performance measures called ____ are directly related to the capital budgeting techniques used in corporate finance.
A) Dividend discount model
B) Aggressive growth indexes
C) Growth indexes
D) Value added
E) Profit sensitization

Question

Quizplus · Accepted Answer

Performance measures that are directly related to the capital budgeting techniques used in corporate finance are called "value added measures." Examples of such measures include net present value (NPV), internal rate of return (IRR), profitability index (PI), and payback period. Dividend discount model, aggressive growth indexes, growth indexes, and profit sensitization are not specifically related to capital budgeting techniques.

A Set of Performance Measures Called ____ Are Directly Related