Return on investment analysis requires the computation of either the net present value or the ________.
A) risk transference
B) risk avoidance
C) internal rate of return
D) total cost of incident

Question

Quizplus · Accepted Answer

Return on investment analysis often involves computing the internal rate of return (IRR), which measures the profitability of potential investments using a percentage value. This is different from net present value (NPV), which provides a dollar value indicating the projected earnings minus costs. Both NPV and IRR are key metrics in evaluating the financial returns of investments.

Return on Investment Analysis Requires the Computation of Either the Net