The ratio of the net cash receipts of the project divided by the cash outlays of the project,enabling tradeoff analysis to be made between competing projects is often referred to as:
A)return on investment (ROI)
B)break-even analysis (BEA)
C)net present value (NPV)
D)future value (FV)

Question

Quizplus · Accepted Answer

The ratio of net cash receipts to cash outlays is known as the return on investment (ROI), which helps in comparing the profitability of different projects.

The Ratio of the Net Cash Receipts of the Project