Question: FIA project's average net income divided by its average book value is referred to as the project's average: A ) Net present value. B )

FIA project's average net income divided by its average book value is referred to as the project's average:
A) Net present value.
B) Internal rate of retum.
C) Accounting return.
D) Profitability index.
E) Payback period.
When the present value of the cash inflows exceeds the initial cost of a project, then the project should be:
A) Accepted because the payback period is less than the required time period.
B) Accepted because the profitability index is greater than 1.
C) Accepted because the profitability index is negative.
D) Rejected because the internal rate of retum is negative.
E) Rejected because the net present value is positive.
Guerilla Radio Broadcasting has a project available with the following cash flows:
\table[[Year,Cash Flow],[0,-$15,200
 FIA project's average net income divided by its average book value

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