When Several Alternative Investment Proposals of the Same Amount Are

question 91

Multiple Choice

When several alternative investment proposals of the same amount are being considered, the one with the largest net present value is the most desirable.If the alternative proposals involve different amounts of investment, it is useful to prepare a relative ranking of the proposals by using a(n) :

• A) average rate of return.
• B) cash payback period.
• C) present value index.
• D) price-level index.

---

Definitions:

Internet

A global network of interconnected computers and servers that facilitates the exchange of data and communication.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically characterized by the absence of cyclical unemployment.

Unemployment

The situation where individuals who are capable of working and actively seeking employment are unable to find a job.

Labor Force

The total number of people employed and those actively seeking employment in an economy.