Which term below is best described as a "formal means of analyzing long-range investment alternatives"?

Question

Quizplus · Accepted Answer

Capital budgeting involves formal analysis of long-term investment alternatives, taking into account factors such as cash flows, time value of money, risk, and return. The other options (time value of money, payback period, and annuity) are all related concepts but do not encompass the full scope of capital budgeting.

Which Term Below Is Best Described as a "Formal Means