Refer to the Table Below,which Shows the Results of Payback,net

question 55

Multiple Choice

Refer to the table below,which shows the results of payback,net present value,and internal rate of return analysis of four projects.Which is preferred by the net present value criterion?
$$\begin{array} { | l | c | c | c | c | } \hline h& \mathrm { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } \\\hline \text { Payback } & 4 & 5 & 4.5 & 3 \\\hline \text { NPV } & \$ 2,199 & \$ 201 & \$ 1,851 & \$ 510 \\\hline \text { IRR } & 20.24 \% & 11.81 \% & 19.64 \% & 12.59 \% \\\hline\end{array}$$

• A)Project A
• B)Project B
• C)Project C
• D)Project D

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Definitions:

Alternative Hypothesis

The hypothesis that proposes a significant difference, relationship, or effect, against the null hypothesis.

One-way ANOVA

A statistical test that analyzes the differences among three or more groups' means based on one independent variable.

Alternative Hypothesis

A proposition that suggests a statistical relationship or difference exists between data sets, typically tested against the null hypothesis.

One-way ANOVA

A statistical test that compares the means of three or more independent groups to see if there is a significant difference among them.