Cresol Corporation Has a Large Number of Potential Investment Opportunities

question 60

Multiple Choice

Cresol Corporation has a large number of potential investment opportunities that are acceptable. However, Cresol does not have enough investment funds to invest in all of them. Which calculation would be the best one for Cresol to use to determine which projects to choose?

• A) payback period
• B) simple rate of return
• C) net present value
• D) project profitability index

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Definitions:

Prejudice

An unreasonable and unfair negative attitude towards an individual or group based on stereotypes rather than actual experience.

Feasibility Studies

Assessments of the practicality of a proposed plan or project, focusing on such aspects as cost, technology, and time.

Pages

Documents that are written or printed, or digital equivalents, often as part of a book, magazine, or website.

Unanimous

Pertaining to a decision or opinion held or expressed by everyone in a group without dissent.