Southern Chicken Is Considering Two Projects

question 105

Multiple Choice

Southern Chicken is considering two projects. Project A consists of creating an outdoor eating area on the unused portion of the restaurant's property. Project B would use that outdoor space for creating a drive-thru service window. When trying to decide which project to accept, the firm should rely most heavily on which one of the following analytical methods? 

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

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