The Following Values Have Been Computed for Various Independent Projects

question 69

Multiple Choice

The following values have been computed for various independent projects which have a required payback period of 3 years, a required discount rate of 14.5 percent, and a required accounting
Return of 11 percent. Which one of these values indicates an accept decision?

• A) Net present value of ($1,200).
• B) Accounting rate of return of 10 percent.
• C) Profitability index of 1.02.
• D) Internal rate of return of 13.6 percent.
• E) Payback period of 3.2 years.