Q 6.18: Maria owns a house with a fair market value of $275,000. When Maria purchased the house she paid $210,000 but that was s
1 answer:
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Answer:
Option D (profitability index) is the correct choice.
Explanation:
Options aren't mentioned in the issue above. Please find the full query attachment here.
Capital budgeting seems to be the mechanism whereby the creditors assess the value of a future investment project. This corresponds to something like the timeframe by which the planned project can produce adequate income to regain the original investment.
<u>The 3 most prevalent frameworks to contractor choosing are given below:</u>
- Payback period.
- Net present value.
- Internal rate of return.
Some other choices have no relation with the specified scenario. So that the option here is just the appropriate ones.
