cure https/moodle zjattempt pho?attempt 526907 uestion 15 Which one of the follo
ID: 2617505 • Letter: C
Question
cure https/moodle zjattempt pho?attempt 526907 uestion 15 Which one of the following methods of analysis is most sppropriate to use when two investments are onts out of 1.00 Select one a. Profablity index bIntemal rane of refurm G. Average accounting r d.Net present value .Modified internal rae ofu Flag question Mary has just been asked to analyze an investment to deermine if it is acceptable. Unfortunately, she is not being given sufficient time to analyzn the project using various methods She must select one method of analysis and provide an answer based solely on that method. Which method do you suggest she use in this situation Poins out of f Y Fag queston a. Payback b. Average accouing rane of retum cIntermal rate of netur d. Net present value Psoftability index Question 17 NAExplanation / Answer
1. Answer : d. Net Present Value
=> When two investments are mutually exclusive, then the net present value at an even discount rate is the best method of analysis.
2. Answer : a. Payback
=> When you do not have enough knowledge about the projects, then payback method is the simplest one where we get the length of the projects in which it pays back initial investments.
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