Which One of the Following Is a Project Acceptance Indicator

question 22

Multiple Choice

Which one of the following is a project acceptance indicator given an independent project with investing type cash flows?

• A)profitability index less than 1.0
• B)project's internal rate of return less than the required return
• C)discounted payback period greater than requirement
• D)average accounting return that is less than the internal rate of return
• E)modified internal rate of return that exceeds the required return

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Definitions:

Drawer

The maker of a draft.

Drawee

The party, typically a bank or financial institution, upon whom a cheque or draft is drawn and is responsible for paying the specified amount to the holder or bearer of the instrument.

Payees

Individuals or entities to whom money is to be paid or is owed.

Discrepancy

A lack of compatibility or similarity between two or more facts, figures, or findings leading to a deviation from what is expected or agreed upon.