Companies often use more than one capital budgeting method to determine which capital investment to make.

Question

Quizplus · Accepted Answer

This is true. Companies typically use multiple capital budgeting methods, such as payback period, net present value, and internal rate of return, to evaluate potential capital investments and make informed decisions. Using more than one method can provide a more comprehensive analysis and help mitigate the shortcomings of any individual method.

Companies Often Use More Than One Capital Budgeting Method to Determine