Which one of the following methods of analysis is most appropriate to use when two investments are mutually exclusive? Internal rate of return   Average accounting return   Profitability index   Net present value

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 1DQ: What are the principal objections to the use of the average rate of return method in evaluating...
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Which one of the following methods of analysis is most appropriate to use when two investments are mutually exclusive?

Internal rate of return
 
Average accounting return
 
Profitability index
 
Net present value
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