Use the Table for the Question(s)below

question 21

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

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Definitions:

Net Income

The final amount a company retains as earnings after subtracting costs and taxes from its gross income.

Revenue

The total amount of money a company generates from its business activities, such as sale of goods or services, before any expenses are subtracted.

Asset

Property or something of value owned by a person or business that is considered as a resource having economic value expected to provide future benefits.

Stockholders' Equity

The remaining interest in a company's assets after its liabilities are subtracted, signifying ownership stake.