The management of a firm wishes to accept projects with quick recovery of investments; wishes...
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Finance
The management of a firm wishes to accept projects with quick recovery of investments; wishes to accept projects with a high degree of liquidity; wishes to avoid the higher forecasting error associated with cash flows a long way into the future; wishes to avoid projects that require a large amount of R&D investments; and so on. The firm would be justified in using the _____ to evaluate its projects.
internal rate of return (IRR)
net present value (NPV)
average accounting return (AAR)
payback method
profitability index (PI)
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