Which of the following can be used to place capital investment proposals involving different amounts of investment on a comparable basis for purposes of net present value analysis?

Question

Quizplus · Accepted Answer

The present value index can be used to place capital investment proposals involving different amounts of investment on a comparable basis for purposes of net present value analysis. This index reflects the present value of cash inflows per dollar of investment and helps to evaluate the profitability of different investment proposals on an equal basis. The other options, such as price-level index, future value index, and rate of investment index, are not directly related to comparing investment proposals for net present value analysis.

Which of the Following Can Be Used to Place Capital