Which of the following is generally considered to be the most superior method for making capital budgeting decisions?

Question

Quizplus · Accepted Answer

The net present value (NPV) method is generally considered to be the most superior method for making capital budgeting decisions. It takes into account the time value of money and considers all cash flows, both inflows and outflows, over the life of the project. The accounting rate of return method and payback method do not consider the time value of money, while the incremental method only considers the additional contributions of a project compared to the status quo.

Which of the Following Is Generally Considered to Be the Most