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Which of the following statements is correct? a. The net present value method is

ID: 2825442 • Letter: W

Question

Which of the following statements is correct?

a. The net present value method is generally regarded as being the best method for evaluating capital budgeting projects.

b. The modified internal rate of return method is generally regarded as being the best single method for evaluating capital budgeting projects.

c. The payback method is generally regarded as being the best single method for evaluating capital budgeting projects.

d. The internal rate of return method is generally regarded as being the best single method for evaluating capital budgeting projects.

Explanation / Answer

a. The net present value method is generally regarded as being the best method for evaluating capital budgeting projects.

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