Business, 29.01.2020 18:45 pnpampanoa

Which one of the following methods of analysis is most appropriate to use when two investments are mutually exclusive? internal rate of returnprofitability indexnet present valuemodified internal rate of returnaverage accounting return

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Answer from: neash19

Hello there!

Your answer would be "Net present value"

Explanation:

The reason why "Net present value" would be the correct answer is because this is the method that is specifically used when two investments are mutually exclusive. What "mutually exclusive" means is that something can't occur, or happen, at the same time. What this sentence is saying is that two investments can't happen at the same time. A "Net present value" is the value of the money that is currently present, while being contrasted into future value when it is invested in, specifically in compound interest. What people would use "Net present value" for when two investments are mutually exclusive is to see how much value the different investments will bring, and see which investment they would want to choose first, specifically for profit wise. This is the reason why net present value would be correct.

Answer from: Quest

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

Answer from: Quest

sorry idk it

explanation:

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