Which One of the Following Is an Indicator That an Investment

question 101

Multiple Choice

Which one of the following is an indicator that an investment is acceptable?

• A)Modified internal rate of return equal to zero
• B)Profitability index of zero
• C)Internal rate of return that exceeds the required return
• D)Payback period that exceeds the required period
• E)Negative average accounting return

---

Definitions:

Understanding

The process of comprehending or grasping the meaning, significance, or nature of something.

Minimize Losses

Minimizing losses involves strategies or actions taken by individuals or businesses to reduce the amount of money or resources lost.

Mortgage Payment

The regular payment made by a borrower to a lender, typically comprising both interest and principal repayment, for a loan secured by real estate.

Monthly Rent

The periodic payment made by a tenant to a landlord for the use of premises.