Which of the following capital budgeting techniques consider(s)cash flow over the entire life of the project?
$\begin{array}{|l|l|}
\hline \text { Internal Rate of Return } & \text { Payback } \
\hline \text { A) Yes } & \text { Yes } \
\hline \text { B) Yes } & \text { No } \
\hline \text { C) No } & \text { Yes } \
\hline \text { D) No } & \text { No } \
\hline
\end{array}$
A) Option A
B) Option B
C) Option C
D) Option D

Question

Quizplus · Accepted Answer

The Internal Rate of Return (IRR) considers cash flows over the entire life of the project to determine the rate of return where the net present value (NPV) equals zero. The Payback method, however, focuses on how quickly the initial investment can be recovered and does not consider cash flows beyond the payback period.

Which of the Following Capital Budgeting Techniques Consider(s)cash Flow Over