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The Liberty Co

Question 92

Multiple Choice

The Liberty Co. is considering two projects. Project A consists of building a wholesale book outlet on lot #169 of the Englewood Retail Center. Project B consists of building a sit-down restaurant on lot #169 of the Englewood Retail Center. When trying to decide whether to 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

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