The ratio of the net cash receipts of the project divided by the cash outlays of the project, enabling trade-off 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 (NP
D) future value (FV).
E) currency rate analysis (CRA).

Question

Quizplus · Accepted Answer

Return on investment (ROI) is the ratio of net cash receipts to cash outlays, used to evaluate the efficiency of an investment or compare the efficiency of several different investments.

The Ratio of the Net Cash Receipts of the Project