Which of the Following Correctly Orders the Investment Rules of Average

question 41

Multiple Choice

Which of the following correctly orders the investment rules of average accounting return (AAR) , internal rate of return (IRR) , and net present value (NPV) from the most desirable to the least desirable?

• A) AAR, IRR, NPV.
• B) AAR, NPV, IRR.
• C) IRR, AAR, NPV.
• D) NPV, AAR, IRR.
• E) NPV, IRR, AAR.

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Definitions:

Effective

The degree to which something is successful in achieving a desired result or outcome.

Short Run

A period in economics during which the quantity and quality of one or more inputs cannot be changed, affecting the immediate production capacity.

Distinct Definitions

Clear and specific explanations or meanings assigned to terms or concepts, emphasizing their unique characteristics.

Culture

The social behavior and norms found in human societies, as well as the knowledge, beliefs, arts, laws, customs, capabilities, and habits of the individuals in these groups.