According to Graham and Harvey's 2001 Survey (Figure 8

question 41

Multiple Choice

According to Graham and Harvey's 2001 survey (Figure 8.2 in the text) , the most popular decision rules for capital budgeting used by CFOs are ________.

• A) NPV, IRR, MIRR
• B) MIRR, IRR, Payback period
• C) IRR, NPV, Payback period
• D) Profitability index, NPV, IRR

---

Definitions:

Intangible Assets

Non-physical assets that possess value due to their intellectual or legal rights and advantages (e.g., patents, trademarks).

Goodwill

An intangible asset that arises when a business is acquired for more than the fair market value of its net assets, representing the value of the business's reputation, brand, and other unquantifiable assets.

Intangibles

Assets that lack physical substance but possess value, such as patents, trademarks, and goodwill.

Amortization Method

A technique used to gradually write off the initial cost of an asset over a period, reflecting its consumption, wear and tear, or obsolescence.