Use the Table for the Question(s)below

question 13

Multiple Choice

Use the table for the question(s) below.
Consider the following list of projects:

-Assuming that your capital is constrained,which investment tool should you use to determine the correct investment decisions?

• A)profitability index
• B)incremental IRR
• C)net present value (NP
• D)internal rate of return (IR
• E)payback period

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Definitions:

Gold Reserves

Quantities of gold held by central banks or governments to back their currencies and provide security for their financial systems.

J.P. Morgan

An influential American banker and financier who played a significant role in the development of the United States' financial system by financing railroads and helping to organize U.S. Steel, General Electric, and other major corporations.

Banking Syndicate

A group of banks that come together to jointly finance a large project or loan, sharing the risk.

Economic Depression

A long-term downturn in economic activity characterized by high unemployment, low consumer spending, and a decline in industrial output.