If a Company Must Choose Between Two Mutually Exclusive Investment

question 88

Multiple Choice

If a company must choose between two mutually exclusive investment projects, the best general method to employ for decision-making purposes is:

• A) Cash-flow bailout.
• B) Cash-flow break-even.
• C) Net present value (NPV).
• D) Discounted payback.
• E) Accounting (book) rate of return (ARR), based on average investment over the life of each project.

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Definitions:

Tactical Partner

A business ally or collaborator involved in strategic planning to achieve specific, short-term objectives.

Customer-Relationship Model

A business strategy that focuses on maintaining engaging, loyal relationships with customers to foster brand loyalty and repeat business.

Consultative Selling

A sales technique where the salesperson acts as an advisor, understanding client needs and recommending solutions accordingly.

Close-Ended

Pertaining to questions or options that limit responses to a set of choices, offering no opportunity for open-ended answers.