A. The number of years required to recover the initial cash investment in a project, is called Pay Back period (PBP).
B. The discount rate that equates the present value of the expected Net Cash Flows (CFs) with the Initial Cash Outflow (ICO) is known as internal rate of return.
C. The present value of the proposal's net cash flows, less the proposal's initial cash outflow is known as the Net Present Value (NPV)
D. All of these
Correct Answer
All of these
Engineering Economy problems
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1. Pick up the correct statement from the following:
Options
A. The ratios which show profitability in relation to sales and those which show profitability in relation to investment, are called profitability ratios.
B. The ratio of gross profit and net sales, is called profitability in relation to sales ratio.
C. The ratio of net profit after taxes to total assests is known as profitability in relation to investment ratio