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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