Question

You are opening up a brand new retail strip mall. You presently have more potential retail outlets wanting to locate in your mall than you have space available. What is the most appropriate tool to use if you are trying to determine the optimal allocation of your retail space?A. profitability indexB. net present value (NPV)C. payback periodD. internal rate of return (IRR)

Answer 1

Answer:

A. Profitability index.

Explanation:

Profitability index, otherwise called profit investment ratio and value investment ratio, is the ratio of result to investment of a proposed task. It is a helpful instrument for positioning activities since it enables you to measure the measure of value made per unit of investment.