Mary has just been asked to analyze an investment to determine if it is acceptable.Unfortunately, she is not being given sufficient time to analyze the project using various methods.She must select one method of analysis and provide an answer based solely on that method.Which method do you suggest she use in this situation?
A)Internal rate of return
B)Payback
C)Average accounting rate of return
D)Net present value
E)Profitability index

Question

Quizplus · Accepted Answer

Net present value (NPV) is the most reliable method for evaluating an investment as it considers the time value of money and provides a clear indication of the expected increase in value from the investment.

Mary Has Just Been Asked to Analyze an Investment to Determine