Which of the Following Ranks Decision Rules from Worst to Best

question 227

Multiple Choice

Which of the following ranks decision rules from worst to best in terms of their overall usefulness in capital budgeting analysis.

• A) Payback, IRR, NPV.
• B) Payback, NPV, IRR.
• C) IRR, NPV, Payback.
• D) NPV, IRR, Payback.
• E) IRR, Payback, NPV.

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Definitions:

Refugee

A person who has been forced to leave their country in order to escape war, persecution, or natural disaster.

Persecuted

Subjected to harassment, punishment, or harm, often due to political, religious, or ethnic affiliation, without just cause or legal proceedings.

Asylum Seeker

An individual who is seeking international protection from dangers in their home country but whose claim for refugee status has not yet been determined.

Free Market Capitalism

An economic system based on supply and demand with minimal government intervention.