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

Payback is a capital budgeting tool that only considers the time it takes for a project to recoup its initial investment, without considering any cash flows beyond that point. It is not suitable for non-normal cash flows that occur beyond the payback period. MIRR, Profitability Index, and NPV are all appropriate for non-normal cash flows.

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