A 2004 survey of large Australian companies shows:
A)NPV is greatest
B)Payback period is greatest
C)IRR is greatest
D)Hurdle rate is greatest

Question

Quizplus · Accepted Answer

NPV (Net Present Value) is a widely used investment appraisal technique that calculates the present value of future cash inflows minus the initial investment. A positive NPV indicates that the investment is profitable and should be pursued, while a negative NPV implies that the investment is not profitable. Therefore, the fact that large Australian companies have reported the highest NPV indicates that they are making profitable investment decisions.

A 2004 Survey of Large Australian Companies Shows