QUESTION 6 The capital budgeting method that allows comparison of the relative desirability of projects that require differing initial investments is the A. cash payback method. B. profitability index C. internal rate of return method. D. net present value method. QUESTION 7 Which one of the following will increase return on investment? A. Increase in costs B. Increase in controllable margin C. Increase in operating assets D. Decrease in sales