According to Graham and Harvey's 2001 survey (Figure 8.2 in the text), the most popular decision rules for capital budgeting used by CFOs are ________.
A) NPV, IRR, MIRR
B) MIRR, IRR, Payback period
C) IRR, NPV, Payback period
D) Profitability index, NPV, IRR

Question

Quizplus · Accepted Answer

According to Graham and Harvey's 2001 survey, the most popular decision rules for capital budgeting used by CFOs are IRR, NPV, and Payback period, in that order. Therefore, choice C is the correct answer. The other choices may include some of the popular decision rules, but they are not in the correct order according to the survey.

According to Graham and Harvey's 2001 Survey (Figure 8