The Best Model for Choosing the Best of Several Competing

question 114

Multiple Choice

The best model for choosing the best of several competing projects is

• A) net present value.
• B) internal rate of return.
• C) payback period.
• D) accounting rate of return.
• E) None of these.

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Definitions:

Liability

The state of being responsible or legally obligated to settle a debt or fulfill a contractual agreement; also refers to any form of legal obligation.

Sole Proprietorship

A type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.