When Two or More Capital Investment Proposals Are Being Evaluated

question 97

True/False

When two or more capital investment proposals are being evaluated using the accounting rate-of-return method,the proposal that yields the lowest ratio of net income to average cost of investment is selected.

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Definitions:

SPIN Approach

The SPIN Approach is a strategic sales technique that focuses on understanding and addressing the specific Situation, Problem, Implication, and Need-payoff questions of a potential client.

Commercial Kitchen

A professionally equipped kitchen designed for the preparation of food on a large scale, often found in restaurants, hotels, and other food service establishments.

Hygiene

Practices and conditions that help maintain health and prevent the spread of diseases, typically concerning cleanliness.

Probes

In sales, questions asked by the salesperson to uncover the needs, interests, and objections of a potential buyer.