Which of the following capital budgeting techniques does not adjust for the riskiness of the cash flows?
A) IRR
B) NPV
C) MIRR
D) Payback

Question

Quizplus · Accepted Answer

Payback period does not adjust for the riskiness of the cash flows. It simply calculates the time it takes to recover the initial investment based on the expected cash flows. IRR, NPV, and MIRR all consider the riskiness of the cash flows by incorporating a discount rate that reflects the risk.

Which of the Following Capital Budgeting Techniques Does Not Adjust