All of the following capital budgeting tools are suitable for non-normal cash flows EXCEPT
A) MIRR.
B) profitability index.
C) payback.
D) NPV.

Question

Quizplus · Accepted Answer

The payback method is not suitable for non-normal cash flows because it simply calculates the time it takes to recoup the initial investment, without accounting for the time value of money or cash flows beyond the payback period.

All of the Following Capital Budgeting Tools Are Suitable for Non-Normal