Kristi Wants to Start Training Her Most Junior Assistant, Amy

question 76

Multiple Choice

Kristi wants to start training her most junior assistant, Amy, in the art of project analysis. Amy has just started college and has no experience or background in business finance. To get her started, Kristi is going to assign the responsibility for all projects that have initial costs less than $1,000 to Amy to analyze. Which method is Kristi most apt to ask Amy to use in making her initial decisions?

• A) Discounted payback 
• B) Profitability index
• C) Internal rate of return
• D) Payback 
• E) Average accounting return

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