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

Question
Asked Dec 18, 2019
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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
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Expert Answer

Step 1

The correct answer is “Net present value”.

Step 2

Justification:

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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