American_Bankers_Association
CTFA · Question #297
The method provides correct rankings of mutually exclusive projects, when one is Not subject to capital rationing.
The correct answer is A. Net present value. See the full explanation below for the reasoning.
Investment Management
Question
The method provides correct rankings of mutually exclusive projects, when one is Not subject to capital rationing.
Options
- ANet present value
- BInternal rate of return
- CPayback period
- DProfitability index
How the community answered
(24 responses)- A83% (20)
- B8% (2)
- C4% (1)
- D4% (1)
Topics
#NPV#mutually exclusive projects#project ranking#capital budgeting
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