The following are measures used by firms when making capital budgeting decisions EXCEPT:
A)payback period.
B)internal rate of return.
C)P/E ratio.
D)net present value.

Question

Quizplus · Accepted Answer

P/E ratio is a measure of a stock's price compared to its earnings per share and is not directly related to capital budgeting decisions. The other three options (payback period, internal rate of return, and net present value) are commonly used measures in capital budgeting decisions.

The Following Are Measures Used by Firms When Making Capital