The two most commonly used financial ratios for comparing investment alternatives are:
A)current and quick ratios.
B)return on sales and return on investment.
C)operating profit margin and net profit margin.
D)payback period and ROI.

Question

Quizplus · Accepted Answer

Payback period and ROI are the two most commonly used financial ratios for comparing investment alternatives. Payback period helps in analyzing the length of time it takes for the investment to return its initial cost, while ROI provides a measure of the investment's profitability by comparing the amount of return to the cost of the investment. Both of these ratios are important in evaluating different investment options and deciding which one is the most beneficial.

The Two Most Commonly Used Financial Ratios for Comparing Investment