The ________ method is economically sound and properly ranks projects across various sizes,time horizons,and levels of risk,without exception for all independent projects.
A)NPV
B)Discounted Payback Period
C)Profitability Index
D)Modified IRR

Question

Quizplus · Accepted Answer

The Net Present Value (NPV) method is the best choice as it considers the time value of money, accounts for all cash flows (including salvage value), and is appropriate for projects of different sizes, time horizons, and levels of risk. It also provides a clear ranking of projects by their absolute value and allows for easy comparison between projects.

The ________ Method Is Economically Sound and Properly Ranks Projects