Which of the following methods are used in capital budgeting decisions?
A)Weighted average cost of capital (WACC)method
B)Adjusted present value (APV)method
C)Flow-to-equity (FTE)method
D)All of the above are used in capital budgeting decisions.

Question

Quizplus · Accepted Answer

All three methods, namely WACC, APV, and FTE, are commonly used in capital budgeting decisions. These methods aid in quantifying the financial feasibility of a project by taking into account factors like the cost of capital, cash flows, and potential risks. Therefore, the best choice is D, as all of the methods are often used in combination to get a more comprehensive perspective of a project's financial viability.

Which of the Following Methods Are Used in Capital Budgeting