Which of the following capital budgeting models is most likely to be used if a company's goal is to maximize their operating book income?

Question

Quizplus · Accepted Answer

The rate of return model focuses on maximizing operating income, making it the most appropriate option in this scenario. Payback period is concerned with recovering initial investment, while net present value and internal rate of return models consider maximizing shareholder wealth.

Which of the Following Capital Budgeting Models Is Most Likely