If you were to make a capital-budgeting decision based on cash flows - would you prefer to

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If you were to make a capital-budgeting decision based on cash flows - would you prefer to use NPV, the IRR method, the payback rule, or the discounted payback rule?

Why would you use the method you selected?
What is the advantage of using multiple methods?

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-0324597707

12th edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: Mar 28, 2023 07:23 AM

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If you were to make a capital-budgeting decision based on cash flows - would you prefer to

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Answer A I would prefer to use the NPV method because it is a measure of the present value of future cash flows and can be used to determine the profi... View the full answer

Fundamentals of Financial Management

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