Which One of the Following Is an Indicator That an Investment

question 54

Multiple Choice

Which one of the following is an indicator that an investment is acceptable? Assume cash flows are conventional.

• A)Modified internal rate of return that is equal to zero
• B)Profitability index of zero
• C)Internal rate of return that exceeds the required return
• D)Payback period that exceeds the required period
• E)Negative average accounting return

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