Which two methods of project analysis were the most widely used by CEO's as of 1999?
A)net present value and payback
B)internal rate of return and payback
C)net present value and average accounting return
D)internal rate of return and net present value
E)payback and average accounting return

Question

Quizplus · Accepted Answer

According to the question, the two methods of project analysis that were most widely used by CEOs as of 1999 were asked. As per the given options, the combination of internal rate of return (IRR) and net present value (NPV) is the best choice. Both IRR and NPV are popular methods of capital budgeting and widely used by businesses to evaluate investment opportunities. While NPV calculates the total value of cash flows generated by a project by discounting all future cash flows to their present value using the required rate of return, IRR calculates the rate of return that equates the present value of future cash flows with the initial investment. Both methods help companies to choose the most profitable projects and provide a basis for decision-making. Thus, the correct answer is D.

Which Two Methods of Project Analysis Were the Most Widely