Question: Fill in each statement with the appropriate capital budgeting method: payback period, ARR, NPV , or IRR. a . q , ignores salvage value after
Fill in each statement with the appropriate capital budgeting method: payback period, ARR, NPV or IRR.
a ignores salvage value after the payback period.
b uses discourted canh flows to determine the asset's unique rate of return.
c Payback period highlights naily emeatments.
d In capital rationing decisions, the profitability index mult be computed to compare investments requiring different initial investments when the method is used.
e and incorporate the time value of money.
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