Which of the following methods is most suitable for analysing projects?
A) ARR
B) NPV
C) Discounted payback
D) Payback

Question

Quizplus · Accepted Answer

NPV is the most suitable method for analysing projects as it takes into account the time value of money and considers all cash flows over the life of the project. ARR and Payback only consider profitability and the timing of cash inflows, while discounted payback is similar to payback but takes into account the time value of money. NPV is considered the most reliable method as it reflects the true profitability of the project.

Which of the Following Methods Is Most Suitable for Analysing