A Company Is Evaluating a Variety of Different Capital Investment

question 45

Multiple Choice

A company is evaluating a variety of different capital investment opportunities. The company can only choose one project due to limited funds. What would be the best capital budgeting method for this company to use to select a project?

• A) Payback method
• B) Accounting rate of return method
• C) Net present value method
• D) Profitability index

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