Which one of the following methods of analysis is most applicable to those situations where small dollar, short-term, independent projects are evaluated by low level managers on a daily basis?
A) Net present value.
B) Internal rate of return.
C) Accounting rate of return.
D) Payback.
E) Proﬁtability index.

Question

Quizplus · Accepted Answer

The payback method is most applicable for small dollar, short-term projects evaluated by low level managers on a daily basis. It measures the time it takes for the initial investment to be recouped through cash inflows. This is a quick and simple method of analysis that doesn't require complex calculations or consideration of the time value of money.

Which One of the Following Methods of Analysis Is Most