Information on Four Investment Proposals Is Given Below

question 35

Multiple Choice

Information on four investment proposals is given below:
Rank the proposals in terms of preference from highest to lowest according to the project profitability index:

• A) 3, 2, 1, 4
• B) 2, 3, 1, 4
• C) 2, 1, 3, 4
• D) 4, 1, 2, 3

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Definitions:

Optimal Choice

The most efficient or favorable option selected from a set of alternatives, based on criteria or preferences.

Payoff

The return or reward received from an investment or action.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal given the strategies of all other players, leading to a situation where no player can benefit by changing strategies unilaterally.

Dominant Strategy

A strategy in game theory that yields the best outcome for a player, regardless of what strategies other players choose.