Question: The present value index is computed using which of the following formulas? Select one: O a. Investment Amount / Average Rate of Return on Investment



The present value index is computed using which of the following formulas? Select one: O a. Investment Amount / Average Rate of Return on Investment O b. Total Present Value of Net Cash Flows / Average Rate of Return on Investment O.c. Investment Amount / Total Present Value of Net.Cash Flows. O d. Total Present Value of Net Cash Flows / Investment Amount. When several heative investment proposals of the same amount ware being considered the one with the largest net present value is the most desirable. If the alternative proposals involve different amounts of investment, it is useful to prepare a relative ranking of the proposals by using in Select one O a Present value index O b. Average rate of retum O c. Payback period Od male from The process by which management plans, evaluates, and controls long term investment decisions involving fixed assets is called: Select one: O a Capital investment analysis O b. Cost volume profit analysis O c. Time value of money analysis. d. Financial statement analysis. Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in: Select one: O a. Schedule of noncash investing and financing activities. O b. Cash flows from investing activities section O c. Cash flows from financing activities section. Od Cash flows from operating activities
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