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a. net present value and profitability index.
b. internal rate of return and payback period.
c. net present value and average rate of return.
d. profitability index and average rate of return.
Option C is the correct one i.e net present value and average rate of return.
net present value and average rate of return
Thanks for the invitation,
I agree with the experts
.....................c. net present value and average rate of return.............................
answser B ________________________________________________________
b. internal rate of return and payback period.l.................................................
Option (B)- internal rate of return and payback period. is the correct answer.
IRR is the primary and payback period is the secondary approach.
According to the notes available and pasted herein below:
Laurence G. Gitman and John R. Forrester Jr. analyzed the responses from110 firms who replied to their survey of the600 companies that Forbes reported as having the greatest stock price growth over the periods. The survey containing questions concerning capital budgeting techniques, the division of responsibility for capital budgeting decisions, the most important and most difficult stages of capital budgeting, the cutoff rate and the methods used to assess risk. They found that the discounted cash flow techniques were the most popular methods for evaluating projects, especially the internal rate of return. However, many firms still used the payback method as a backup or secondary approach.
c. net present value and average rate of return ...................................................
Answer is02 is correct as per rule