Which one of the following is generally considered to be the best form of analysis if you have to select a single method to analyze a variety of investment opportunities?
A)Payback
B)Profitability index
C)Accounting rate of return
D)Internal rate of return
E)Net present value

Question

Quizplus · Accepted Answer

Net present value (NPV) is generally considered the best method for analyzing investment opportunities because it accounts for the time value of money, provides a direct measure of the expected increase in value, and considers all cash flows over the life of the investment.

Which One of the Following Is Generally Considered to Be