______ is a measure of how much value is created or added today by undertaking an investment. Multiple choice question. The internal rate of return The profitability index Net present value Average accounting return

why net present value is considered to be superior to internal rate of return as an investment appraisal method? Critically evaluate and give an example if possible

what is return on investment capital and profitability analysis?

__________ considers the impact of changing one or more inputs or assumptions on the resulting answer (output) of an analysis. a.Sensitivity analysis b.Capital rationing c.Expected value analysis d.The net present value method

Explain profitability index

The economic value added (EVA) is a performance measure based on the Blank______. Multiple choice question. risk-free rate weighted average cost of capital cost of equity expected return

Which of the following is an appropriate computation for return on investment? a. Sales divided by total assets b. Net income divided by total assets c. Net income divided by sales d. Sales divided by stockholders' equity   would b be the right answer?

The Blank______ method is both intuitive and easy to understand. Multiple choice question. payback period net present value internal rate of return profitability index

The difference between an investment's market value and its cost is known as its Blank______. Multiple choice question. net present value internal rate of return profitability index payback period

Introduction Net Present Value is a financial measure used to evaluate the profitability of an investment or project. If an NPV is positive, it suggests that the investment is profitable to the investor, while a negative NPV indicates potential losses. It helps in decision-making by considering the cost of capital and determining whether an investment adds value to the business.