The following are measures used by firms when making capital budgeting decisions except:
A) Payback period
B) Internal rate of return
C) P/E ratio
D) Net present value

Question

Quizplus · Accepted Answer

The P/E ratio is a measure of a company's stock valuation and is not typically used in capital budgeting decisions, which focus on evaluating potential investments or projects. The other options listed (payback period, internal rate of return, and net present value) are commonly used measures in capital budgeting decisions.

The Following Are Measures Used by Firms When Making Capital