The ________ method of capital budgeting provides an answer in dollar terms whereas the ________ method provides answers in percentage terms.

Question

Quizplus · Accepted Answer

NPV (Net Present Value) method provides an answer in dollar terms as it calculates the present value of all cash inflows and outflows associated with a project, while IRR (Internal Rate of Return) method provides answers in percentage terms by calculating the rate at which the project's net present value equals zero. Therefore, option D is correct.

The ________ Method of Capital Budgeting Provides an Answer in Dollar