Which Is the Optimal Technique or Rule for Ranking Investment

question 31

Multiple Choice

Which is the optimal technique or rule for ranking investment proposals?

• A) The NPV ranking
• B) The profitability index
• C) The IRR ranking
• D) All rules are flawed where proposals have different lives.

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Definitions:

Notice Of Dishonor

A formal notification indicating that a negotiable instrument, such as a check, has been refused payment.

Certified

Officially recognized or verified, often by a certification body, as meeting a specific standard or criteria.

Discharged From Liability

A condition where an individual or entity is legally released from an obligation or debt.

Paying The Holder

The act of disbursing funds or settling a financial obligation to the lawful possessor of a negotiable instrument.