Which of the Following Tools Is Sometimes Used to Rank

question 59

Multiple Choice

Which of the following tools is sometimes used to rank investment proposals?

• A)Profitability index.
• B)Annuity index.
• C)Project assessment guide.
• D)Investment opportunity index.
• E)Capital ranking index.

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Definitions:

Supply

Represents the total amount of a good or service that producers are willing and able to sell at a given price over a certain period.

Perfectly Elastic

A situation where the demand or supply for a good is extremely sensitive to changes in price, depicted as a horizontal line on a graph.

Relatively Elastic

Describes a situation where a small change in price leads to a relatively larger change in the quantity demanded or supplied of a good or service.

Demand for Gasoline

Describes how much gasoline consumers want to buy at various prices, often influenced by factors like income and price of substitutes.