Question: Explain the following alternative decision tools to net present value in making investment decisions: Book Rate of Return The Payback Period Internal Rate of Return

Explain the following alternative decision tools to net present value in making investment decisions:

  1. Book Rate of Return
  2. The Payback Period
  3. Internal Rate of Return
  4. Profitability Index

Highlight any advantages or disadvantages of these alternative evaluation techniques in comparison to the use of net present value.

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