Managers must often use multiple measures to effectively rank capital projects.

Question

Quizplus · Accepted Answer

Managers need to consider multiple measures such as net present value, internal rate of return, payback period, and profitability index when ranking capital projects. Each measure provides a different perspective on a project's financial feasibility and value, and using several measures can help mitigate the limitations or biases of individual measures.

Managers Must Often Use Multiple Measures to Effectively Rank Capital