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

question 37

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 internal rate of return criterion?

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

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Definitions:

Cash Flows

The sum of funds flowing in and out of a company, impacting its ability to cover short-term obligations.

Initial Cost

The total of all expenses incurred to acquire an asset or investment, including purchase price and all related fees.

Average Accounting Rate of Return

A financial ratio that measures the expected return on an investment based on its net income and initial cost.

Straight-Line Depreciation

An arrangement for allocating the cost of a tangible asset over its duration of usefulness in identical annual segments.