A Firm Is Considering Several Mutually Exclusive Investment Opportunities

question 123

Multiple Choice

A firm is considering several mutually exclusive investment opportunities.The best way to choose between them is which of the following?

• A)profitability index
• B)payback period
• C)net present value (NPV)
• D)internal rate of return (IRR)
• E)discounted payback period

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Definitions:

Two-phase System

A system made up of two immiscible (non-mixing) liquids or a liquid and a solid, in which chemical reactions can occur at the interface.

Dichloromethane

A volatile, colorless liquid organic compound with the chemical formula CH2Cl2, used as a solvent and paint remover.

Molecular Dipole Moment

A measure of the separation of positive and negative electrical charges within a molecule, influencing molecular interactions.

Alkyl Halides

Organic compounds containing a halogen atom bonded to an aliphatic carbon chain.