Under Conditions of Limited Resources, When a Company Is Comparing

question 96

Multiple Choice

Under conditions of limited resources, when a company is comparing several investments with different amounts of initial outlay, the decision should be made on the basis of:

• A)highest total cash inflows.
• B)shortest payback period.
• C)highest profitability index.
• D)highest NPV.

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Definitions:

Payment

The transfer of money or goods from one party to another as a fulfillment of a transaction or obligation.

Handwriting

The act or process of writing by hand, including the style and manner in which a person writes.

Merchants

Individuals or entities engaged in the sale of goods and services, often within specific sectors or industries, playing a crucial role in the economy.

Negotiable Instrument

A formal written commitment to pay a particular amount of money, either when asked or at an agreed-upon time, with the individual who will make the payment specified in the document.