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

Question

Quizplus · Accepted Answer

The rate of return model focuses on maximizing operating profit, making it the best choice for this goal. Net present value, internal rate of return, and payback all prioritize maximizing shareholder value or achieving a specific return on investment, rather than operating profit.

Which of the Following Capital Budgeting Models Is Most Likely