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All of the following are techniques for evaluating capital budgeting projects ex

ID: 2623962 • Letter: A

Question

All of the following are techniques for evaluating capital budgeting projects except; net present value modified internal rate of return discounted equation here. payback period calculate the payback period for an annuity you divide the initial outlay by; the annual cash flow the first three cash flows the expected percentage return the firm's EPS The most popular capital budgeting evaluation techniques is; payback modified internal rate of return internal rate of return net present value The decision rule for NPV is; accept all projects with positive NPVs accept all projects with negative NPVs accept all NPVs above 10% accept all NPVs below 10% A profitability index greater than one indicates we should; reject the project evaluate the project with a different time horizon accept the project find a project with a higher return

Explanation / Answer

Ans-6]Option-C:-Discounted EPS

Ans-7]Option-A:-the annual cashflow

Ans-8]Option-D:-Net present value

Ans-9]Option-A:-accept all projects with positive NPVs

Ans-10]Option-C:-Accept the project

Ans-6]Option-C:-Discounted EPS

Ans-7]Option-A:-the annual cashflow

Ans-8]Option-D:-Net present value

Ans-9]Option-A:-accept all projects with positive NPVs

Ans-10]Option-C:-Accept the project