Capital investment proposals should be ranked in decreasing order of:

Question

Quizplus · Accepted Answer

Capital investment proposals should be ranked based on their rate of return, which represents the potential profitability of the investment. This allows for a comparison of different proposals that may require different dollar amounts, salvage values, and residual values. Ultimately, the goal of capital investment is to maximize profitability, which is best measured by the rate of return.

Capital Investment Proposals Should Be Ranked in Decreasing Order Of