Which One of the Following Is Generally Considered to Be

question 37

Multiple Choice

Which one of the following is generally considered to be the best form of analysis if you have to select a single method to analyze a variety of investment opportunities?

• A)Payback
• B)Profitability index
• C)Accounting rate of return
• D)Internal rate of return
• E)Net present value

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Definitions:

Directly Proportional

A relationship between two variables wherein they increase or decrease at the same ratio.

Fifth Power

Raising a number or expression to the exponent of five, multiplying it by itself four times.

Hooke's Law

A principle of physics that states the force needed to extend or compress a spring by some distance is proportional to that distance.

Spring Scale

A scale that measures weight or force by the stiffness of springs.