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What is the term for the financial ratio applied to capital expenditures and assessing the worth of an investment proposal?
  • a)
    Financial budgeting.
  • b)
    Return on investment (ROI).
  • c)
    Profit margin analysis.
  • d)
    Debt-equity ratio.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What is the term for the financial ratio applied to capital expenditur...
The term for the financial ratio applied to capital expenditures and assessing the worth of an investment proposal is "Return on Investment (ROI)." ROI measures the return generated by investments in both physical assets and financial instruments. It's a crucial metric for evaluating the profitability of investments.
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What is the term for the financial ratio applied to capital expenditures and assessing the worth of an investment proposal?a)Financial budgeting.b)Return on investment (ROI).c)Profit margin analysis.d)Debt-equity ratio.Correct answer is option 'B'. Can you explain this answer?
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