Dube Corporation Is Considering the Following Three Investment Projects

question 87

Multiple Choice

Dube Corporation is considering the following three investment projects: Rank the projects according to the profitability index,from most profitable to least profitable.

• A)F,E,D
• B)D,F,E
• C)F,D,E
• D)E,F,D

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Definitions:

Maker

In financial terms, it refers to the entity that creates or issues a promissory note or draft.

Drawee

The party in a financial transaction who is directed to pay a certain sum, typically the bank on which a check is drawn.

Negotiable

Capable of being transferred or converted into goods, services, or money under terms agreeable to the involved parties.

Payable To Order

A clause on a financial document that specifies who can receive the payment, allowing the initial payee to endorse it over to another party.