Which of the Following Statements Is True About Capital Investment

question 84

Multiple Choice

Which of the following statements is true about capital investment decisions:

• A)The project with the highest net present value will always be selected.
• B)The project with the highest internal rate of return will always be selected.
• C)The project with the highest net present value may not always be selected.
• D)The project with the highest accounting rate of return will always be selected.

---

Definitions:

Partnership Business

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed.