According to Graham and Harvey's 2001 survey (Figure 7.2 in the text),the most popular decision rules for capital budgeting used by CFOs are:
A)NPV,Profitability index,payback period.
B)Profitability index,IRR,Payback period.
C)IRR,NPV,Payback period.
D)Profitability index,NPV,IRR.
E)NPV,IRR,discounted payback period.

Question

Quizplus · Accepted Answer

According to Graham and Harvey's 2001 survey, the most popular decision rules for capital budgeting used by CFOs are IRR, NPV, and Payback period. Therefore, the best choice is C as it includes all three of these popular decision rules.

According to Graham and Harvey's 2001 Survey (Figure 7