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:

National Saving

The total amount of saving in a country, which includes both private savings and public (government) savings.

Closed Economy

An economic system that does not engage in international trade with outside countries, relying on its own resources.

Accounting Identity

A fundamental equation that must always hold true, often without regard to time or specific instances, in accounting and economics.

Government Purchases

Expenditures by the government sector for goods and services that are consumed within the current period.