Amster Corporation has not yet decided on its discount rate for use in the evaluation of capital budgeting proposals.This lack of information will prohibit the company from calculating a proposed investment's: $$\begin{array}{l}
\begin{array} { l l l l } &\text { Accounting Rate of Return } &\text { Net Present Value }&\text { Internal Rate of Return }\
\text { A) } & \text { No } & \text { No } & \text { No } \
\text { B) } & \text { Yes } & \text { Yes } & \text { Yes } \
\text { C) } & \text { No } & \text { Yes } & \text { Yes } \
\text { D) } & \text { No } & \text { Yes } & \text { No } \
\text { E) } & \text { Yes } & \text { No } & \text { Yes }
\end{array}
\end{array}$$
A)Option A
B)Option B
C)Option C
D)Option D
E)Option E

Question

Quizplus · Accepted Answer

The Net Present Value (NPV) and Internal Rate of Return (IRR) require a discount rate to be calculated, whereas the Accounting Rate of Return does not.

Amster Corporation Has Not Yet Decided on Its Discount Rate