26. Which one of the following is an indicator that an investment is acceptable

Question

26. Which one of the following is an indicator that an investment is acceptable A. Modified internal rate of return equal to zero B. Profitability index of zero C. Internal rate of return that exceeds the required return D. Payback period that exceeds the required period E. Negative average accounting return 7. Which one of the following indicates that a project should be rejected? A. Average accounting return that exceeds the requirement B. Payback period that is shorter than the requirement period C. Positive net present value D. Profitability index less than 1.0 E. Internal rate of return that exceeds the required return

Explanation / Answer

26.Option C (If the internal rate of return is exceeding the required return than it states that it is an indicator to accept the project.)

27.Option D (If the profitability index is less than 1 than it is the indicator that the project should be rejected.)

Thanks....

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.