The New Blues Co

Multiple Choice

The New Blues Co. is considering two projects. Project A consists of building a wholesale book outlet on lot #169 of the Minglewood Retail Center. Project B consists of building a sit-down
Restaurant on lot #169 of the Minglewood Retail Center. When trying to decide whether or build the
Book outlet or the restaurant, management should rely most heavily on the analysis results from the
_____ method of analysis.

A) Profitability index.
B) Internal rate of return.
C) Payback.
D) Net present value.
E) Accounting rate of return.