Question: Common capital budgeting methods include: Net present value (NPV) Internal rate of return (IRR) Modified internal rate of return (MIRR) Profitability index (PI) Payback method

Common capital budgeting methods include:

  • Net present value (NPV)
  • Internal rate of return (IRR)
  • Modified internal rate of return (MIRR)
  • Profitability index (PI)
  • Payback method
  • Accounting rate of return (ARR)

  • Compare and contrast the mechanics, advantages, and disadvantages of the two selected methods.
  • Recommend the method that you believe is superior and justify your position.

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