-You are trying to decide between three mutually exclusive investment opportunities. The most appropriate tool for identifying the correct decision is ________.
A) net present value (NP
B) profitability index
C) internal rate of return (IR
D) incremental internal rate of return (IR

Question

-You are trying to decide between three mutually exclusive investment opportunities. The most appropriate tool for identifying the correct decision is ________.
A) net present value (NP
B) profitability index 
C) internal rate of return (IR
D) incremental internal rate of return (IR

Quizplus · Accepted Answer

Net Present Value (NPV) is the most appropriate tool for comparing mutually exclusive investment opportunities because it provides a direct measure of how much value an investment will add to the firm, taking into account the time value of money.

-You Are Trying to Decide Between Three Mutually Exclusive Investment