A capital budgeting technique that generates a decision rule and associated metric for choosing projects based on the total discounted value of their cash flows is referred to as
A) PI.
B) IRR.
C) NPV.
D) MIRR.

Question

Quizplus · Accepted Answer

The Net Present Value (NPV) method is a capital budgeting technique that calculates the total discounted value of a project's cash flows. It helps in determining the profitability of a project by comparing the present value of its cash inflows with the present value of its cash outflows.

A Capital Budgeting Technique That Generates a Decision Rule and Associated