The _______________ approach to capital budgeting analysis is analogous to the net advantage to leasing (NAL) approach to evaluating lease agreements.

Question

Quizplus · Accepted Answer

The net present value (NPV) approach and the net advantage to leasing (NAL) approach both take into account the time value of money and compare the present value of cash inflows and outflows. Both approaches also consider the opportunity cost of investing in the project or lease, respectively. Therefore, the correct answer is A) Net present value.

The _______________ Approach to Capital Budgeting Analysis Is Analogous to the Net