Multiple Choice
Which capital investment evaluation technique is described by the following characteristics? (1) Closely related to NPV; (2) Easy to understand and communicate; (3) May lead to incorrect decisions when comparing mutually exclusive investments; (4) May be useful when the available investment funds are limited.
A) NPV
B) IRR
C) AAR
D) Payback period
E) PI
Correct Answer:
Verified
Correct Answer:
Verified
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