When Several Alternative Investment Proposals of the Same Amount Are

question 94

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 index
• B) consumer price index
• C) present value index
• D) price-level index

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Definitions:

Dissociation

A mental process that causes a lack of connection in a person's thoughts, memory, and sense of identity.

Role-Playing

A method or activity in which individuals assume roles and act out parts in a fictional scenario for various purposes.

Gullibility

The tendency to be easily persuaded that something is true or to be easily tricked into believing something without sufficient evidence.

Dissociation

A mental process of disconnecting from one’s thoughts, feelings, memories, or sense of identity.