In addition to the NPV rule that is used as an investment decision rule,we also use the following rules for single,stand-alone projects within the firm:
A) the payback rule, IRR rule, and EVA rule.
B) the payback rule, discounted payback rule and ROE rule.
C) the payback rule, ROE rule and ROA rule.
D) the payback rule, IRR rule and ROI rule.

Question

Quizplus · Accepted Answer

The payback rule, IRR (Internal Rate of Return) rule, and EVA (Economic Value Added) rule are commonly used alongside the NPV (Net Present Value) rule for evaluating single, stand-alone projects within a firm. These methods help in assessing the profitability, risk, and value creation of potential investments.

In Addition to the NPV Rule That Is Used as an Investment