There are four principal decision models for evaluating and selecting investment projects: Net present value (NPV) Profitability index (PI) Internal rate of return (IRR) Payback period (PB) Which criteria assume that the project's net cash flows (NCFS) are reinvested at the project's internal rate of return? NPV, IRR, and PI IRR Discounted PB NPV and discounted PB Read the following statements and categorize whether they characterize the IRR, NPV, PB, or PI decision criteria: Statement IRR NPV PB PI O O o O The discount rate that equates the present value of the project's net cash flows with the present value of the net investment Provides an easy-to-interpret benchmark value, since a value of one indicates a project that earns the firm's minimum acceptable return This value represents the addition to the firm's value-and its shareholders' wealth-if a project is accepted and implemented o o o O O o