Which of the following statements is CORRECT?
A) The internal rate of return method (IRR)is generally regarded by academics as being the best single method for evaluating capital budgeting projects.
B) The payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects.
C) The discounted payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects.
D) The net present value method (NPV)is generally regarded by academics as being the best single method for evaluating capital budgeting projects.
E) The modified internal rate of return method (MIRR)is generally regarded by academics as being the best single method for evaluating capital budgeting projects.

Question

Quizplus · Accepted Answer

The net present value method (NPV) is generally regarded by academics as being the best single method for evaluating capital budgeting projects. This is because it takes into account the time value of money and provides the most accurate measure of a project's profitability. The other methods listed have limitations and drawbacks in comparison to NPV.

Which of the Following Statements Is CORRECT