Which Method(s)of Project Analysis Is(are)best Suited for Use by a Department

question 44

Multiple Choice

Which method(s) of project analysis is(are) best suited for use by a department manager who has no knowledge of time value of money but can estimate the cash flows of small projects with short lives fairly accurately?

• A)Payback
• B)Discounted payback
• C)Profitability index
• D)Net present value
• E)Either payback or profitability index

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Definitions:

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Something valued not for its own sake, but for the utility it brings in achieving something else considered as an end.