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NEW QUESTION: 1
The capital budgeting model that is generally considered the best model for long-range decision making is the:
A. Accounting rate of return model.
B. Discounted cash flow model.
C. Payback model.
D. Unadjusted rate of return model.
Answer: B
Explanation:
The capital budgeting methods that are generally considered the best for long-range decision making are the internal rate of return and net present value methods. These are both discounted cash flow methods.