A Firm Is Considering Several Mutually Exclusive Investment Opportunities

question 34

Multiple Choice

A firm is considering several mutually exclusive investment opportunities. The best way to choose between them is which of the following?

• A)net present value (NPV)
• B)payback period
• C)profitability index
• D)internal rate of return (IRR)

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Definitions:

Penalty Kick

A method of restarting play in soccer, awarded for certain fouls within the penalty area, where a player kicks the ball from the penalty spot aiming to score against the opposing goalkeeper alone.

Kicker's Payoffs

Term used in game theory to describe the rewards or outcomes that a player (the "kicker") stands to gain from various actions.

Probability of Success

The likelihood or chance of an event or endeavor achieving its intended outcome or goal.

Probability of Failure

This refers to the likelihood that a system or component will fail to perform its intended function within a specified period.