Of the capital budgeting techniques discussed, which works equally well with normal and non-normal cash flows and with independent and mutually exclusive projects?Multiple Choice Net present value Discounted payback period Payback period Modified internal rate of return

Asked Dec 18, 2019

Of the capital budgeting techniques discussed, which works equally well with normal and non-normal cash flows and with independent and mutually exclusive projects?

Multiple Choice

    Net present value
    Discounted payback period
    Payback period
    Modified internal rate of return

Expert Answer

Step 1

The correct answer is “Net present value”.

Step 2


The Net present value spotlights on the net wealth that will be made by an investment over a specified timeframe. Because of its focal point of wealth maximization, this is the best method for cap...

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