Which of the Following Is LEAST Preferable for Measuring Profitability

question 71

Multiple Choice

Which of the following is LEAST preferable for measuring profitability of an investment?

• A) Internal rate of return method
• B) Payback method
• C) Net present value method
• D) Unadjusted rate of return method

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Definitions:

Economic Loss

The financial loss incurred when the cost of producing a good or service exceeds the revenue gained from selling it.

Widgets

A generic term used to describe a hypothetical product or manufactured good.

Rent-Seeking Behavior

Efforts focused on expanding an individual's portion of current wealth without generating additional wealth, frequently via altering the economic landscape.

Landlords

Individuals or entities that own property and rent it out to tenants in exchange for rent payments.