While ________ method is the most reliable method when evaluating an acquisition investment,real-world practitioners often use ________ and ________ as alternative valuation metrics.
A) the NPV; the IRR; the cash multiple (or multiple of money)
B) the IRR; the NPV; the cash multiple (or multiple of money)
C) the NPV; the cash multiple (or multiple of money); the IRR
D) the IRR; the cash multiple (or multiple of money); the NPV

Question

Quizplus · Accepted Answer

The NPV (Net Present Value) method is considered the most reliable for evaluating acquisition investments. However, practitioners often use the IRR (Internal Rate of Return) and the cash multiple as alternative metrics.

While ________ Method Is the Most Reliable Method When Evaluating