Question 20

The ___________ decision rule is considered the best in theory.

Group of answer choices

Payback Method

Internal Rate of Return

Net Present Value

Profitability Index

All are considered equal depending on the circumstance.

Question 21

Rich and Joe are both considering investing in a project with the following cash flows. Rich is content earning a 10 percent return but Joe desires a return of 25 percent. Who, if either, should accept this project?

Year	Cash Flow
0	-$5,000
1	1,000
2	6,000

Group of answer choices

Both Joe and Rich should accept this project

Only Rich should accept this project

Only Joe should accept this project

Neither Rich or Joe should accept this project

There is not enough information to answer this question