If an Investment Has A(n) ___________ of 1

question 299

Multiple Choice

If an investment has a(n) ___________ of 1.2 it can be said that the investment generates $1.20 in present value benefits for each dollar of invested costs.

• A) Profitability index.
• B) Net present value.
• C) Internal rate of return.
• D) Payback period.
• E) Average accounting return.