You Were Recently Hired by a Firm as a Project

question 2

Multiple Choice

You were recently hired by a firm as a project analyst.The owner of the firm is unfamiliar with financial analysis and wants to know only what the expected dollar return is per dollar spent on a given project.Which financial method of analysis will provide the information that the owner requests?

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

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Definitions:

Multi-ethnic

Describes a society or group that contains members from diverse ethnic backgrounds.

Austrian Empire

A centralized absolute monarchy in Central Europe from 1804 to 1867, which became the Austro-Hungarian Empire after the Compromise of 1867.

Multi-lingual

The ability of an individual or system to communicate effectively in multiple languages.

Italian Unification

The political and social movement that consolidated different states of the Italian peninsula into the single state of Italy in the 19th century.