What are the two most popular forms of capital budgeting decision rules in practice?

Question

Quizplus · Accepted Answer

IRR and NPV are the two most popular forms of capital budgeting decision rules in practice. IRR calculates the percentage rate of return that a project is expected to generate, while NPV measures the present value of future cash inflows minus the initial investment. Both methods are widely used by companies to evaluate the financial viability of potential investment projects. Payback period and profitability index are also commonly used, but they are not as widely adopted as IRR and NPV.

What Are the Two Most Popular Forms of Capital Budgeting