AFP
CTP · Question #9
(Topic 1) Which of the following is NOT a drawback to using ROI as a performance measure?
The correct answer is B. It does not consider the profit generated by a project. See the full explanation below for the reasoning.
Question
- (Topic 1)
Which of the following is NOT a drawback to using ROI as a performance measure?
Options
- AIt may be misleading when cash flows are not evenly distributed over time.
- BIt does not consider the profit generated by a project.
- CIt does not include a charge for cost of capital.
- DIt may lead to rejection of a positive NPV project.
How the community answered
(31 responses)- A6% (2)
- B71% (22)
- C16% (5)
- D6% (2)
Community Discussion
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