Use the Table for the Question(s)below

question 70

Multiple Choice

Use the table for the question(s) below.
Consider the following list of projects:
-Assuming that your capital is constrained,which investment tool should you use to determine the correct investment decisions?

• A)Profitability Index
• B)Incremental IRR
• C)NPV
• D)IRR

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Definitions:

Type II Error

A statistical error that occurs when a false null hypothesis is not rejected.

Unemployment Rate

The proportion of the workforce that is unemployed and actively seeking work.

Statistics Canada

The national statistical office of Canada, responsible for producing statistics on the Canadian economy, society, and environment.

Hypothesis Test

A method in statistics used to determine if there is enough evidence to support or reject a proposed hypothesis.