You Were Recently Hired by a Firm as a Project

question 2

Multiple Choice

You were recently hired by a firm as a project analyst.The owner of the firm is unfamiliar with financial analysis and wants to know only what the expected dollar return is per dollar spent on a given project.Which financial method of analysis will provide the information that the owner requests?

• A)Internal rate of return
• B)Modified internal rate of return
• C)Net present value
• D)Profitability index
• E)Payback

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