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    Question

    ___________ is a capital budgeting technique which does not require the computation of the cost of capital for decision making purposes.

    A Modified IRR Correct Answer Incorrect Answer
    B Payback Correct Answer Incorrect Answer
    C IRR Correct Answer Incorrect Answer
    D NPV Correct Answer Incorrect Answer

    Solution

    The capital budgeting technique that does not require the computation of the cost of capital for decision-making purposes is the "Payback" method. The Payback method focuses on determining the time it takes to recoup the initial investment without considering the time value of money or the cost of capital. It simply measures the time required for the cash inflows to equal the initial investment, and the decision is often based on the shortest payback period.

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