Which of the Following Statements Is CORRECT

question 82

Multiple Choice

Which of the following statements is CORRECT?

• A) The payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects.
• B) The discounted payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects.
• C) The net present value method (NPV) is generally regarded by academics as being the best single method for evaluating capital budgeting projects.
• D) The modified internal rate of return method (MIRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects.
• E) The internal rate of return method (IRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects.

---

Definitions:

Dual Purpose Corporation

A business entity designed to operate for both profit and to achieve a social or charitable goal.

General Partnership

A partnership in which the partners divide profits and management responsibility and share unlimited personal liability for the partnership’s debts.

Business Losses

Business losses are the negative financial impacts a business suffers, often reflected in its financial statements as expenses exceeding revenues.

Personal Liability

The legal responsibility of an individual to fulfill obligations or debts out of their own assets.