Which of the Following Methods Properly Ranks Projects' Contribution to Firm

question 16

Multiple Choice

Which of the following methods properly ranks projects' contribution to firm value when the projects have scale differences?

• A)internal rate of return
• B)modified internal rate of return
• C)net present value
• D)profitability index

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Definitions:

Process Capability Index

A statistical measure of a process's ability to produce output within specified limits.

C-Chart

A quality control chart used to control the number of defects per unit of output.

Six Sigma

A set of techniques and tools for process improvement, aiming at reducing defects and variability in manufacturing and business processes to improve quality and efficiency.