Which of the following capital budgeting methods should be used (and why) when there is...
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Finance
Which of the following capital budgeting methods should be used (and why) when there is a conflict in selecting one of two mutually exclusive projects?
Select one:
a.IRR, because executives understand and relate to rates of return.
b.Profitabilty index, because it shows the value returned per dollar.
c.NPV, because it is an absolute measure of value.
d.Discounted payback period, because it directly measures the project's risk.
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