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A) What method would you use to analyze an investment if could only choose one? Internal Rate of Return Payback Average Accounting Rate of Return

A) What method would you use to analyze an investment if could only choose one?

  • Internal Rate of Return

  • Payback

  • Average Accounting Rate of Return

  • Net Present Value

  • Profitability Index

B)Given conventional cash flows, you would accept an investment if

  • Modified Internal Rate of Return = zero

  • Internal Rate of Return > required return

  • Profitability Index = zero

  • Average Accounting Return is negative

  • Payback period > required period

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