You Are Trying to Decide Between Three Mutually Exclusive Investment

question 22

Multiple Choice

You are trying to decide between three mutually exclusive investment opportunities.The most appropriate tool for identifying the correct decision is

• A) the NPV.
• B) the Profitability Index.
• C) the IRR.
• D) the Incremental IRR.

---

Definitions:

Patent

A government grant giving an inventor exclusive rights to make, use, and sell an invention for a certain number of years.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, and artistic fields, including patents, copyrights, trademarks, and trade secrets.

Copyright Office

A government agency responsible for registering copyrights and managing copyright laws.

Tangible Form

Property or assets that have a physical presence and can be touched, as opposed to intangible assets like intellectual property.