Which One of the Following Indicates That a Project Should

question 15

Multiple Choice

Which one of the following indicates that a project should be rejected?

• A)Average accounting return that exceeds the requirement
• B)Payback period that is shorter than the requirement period
• C)Positive net present value
• D)Profitability index less than 1.0
• E)Internal rate of return that exceeds the required return

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Definitions:

Discouraged Workers

Individuals who are not actively looking for employment because they believe no jobs are available for them.

Unemployment Insurance

is a government program that provides temporary financial assistance to eligible workers who are unemployed through no fault of their own.

Misery Index

The misery index is an economic indicator created by adding the unemployment rate to the inflation rate, designed to measure the health of an economy.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a reference rate for various types of loans.