Which One of the Following Indicators Offers the Best Assurance

question 92

Multiple Choice

Which one of the following indicators offers the best assurance that a project will produce value for its owners?

• A)PI equal to zero
• B)Negative rate of return
• C)Positive AAR
• D)Positive IRR
• E)Positive NPV

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Definitions:

Substituted Contract

An agreement made to replace an existing contract, involving the mutual consent of all parties to change the terms or parties involved.

Incidental Damages

Expenses or costs that arise directly from a breach of contract, beyond the direct damages or losses incurred.

Employment Contract

A legally binding agreement between an employer and an employee that outlines the terms of employment, including duties, responsibilities, compensation, and conditions of work.

Nominal Damages

Small monetary compensation awarded to a plaintiff in a lawsuit when no actual damage was suffered or when the plaintiff is unable to prove actual losses.