Which One of the Following Is Generally Considered to Be

question 21

Multiple Choice

Which one of the following is generally considered to be the best form of analysis if you have to select a single method to analyse a variety of investment opportunities?

• A)payback
• B)profitability index
• C)accounting rate of return
• D)internal rate of return
• E)net present value

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Definitions:

Small Company

A business with a small number of employees and a low volume of sales compared to larger companies in its industry.

Positive Statement

A statement that can be tested and validated; it describes what is and not what should be.

Federal Government

The national government of a federal republic, which possesses certain powers at the national level while other powers are shared with or reserved for the states.

Interest Rates

The percentage charged on a loan or paid on savings, effectively the price of capital.