Capital budgeting techniques using present value techniques are useful in helping management:
A)decide which costs are most relevant in decision making.
B)identify investment alternatives that will contribute most to future profitability.
C)determine an accounting rate of return.
D)determine an investments payback period.

Question

Quizplus · Accepted Answer

Present value techniques in capital budgeting, such as Net Present Value (NPV) and Internal Rate of Return (IRR), help management evaluate and compare the profitability of different investment alternatives by considering the time value of money.

Capital Budgeting Techniques Using Present Value Techniques Are Useful in Helping