Which of the following decision criteria is the easiest to use and very popular among investors? Payback period. Internal rate of return. O Average accounting return. Net present value. Discounted return on investment.
Which of the following decision criteria is the easiest to use and very popular among investors? Payback period. Internal rate of return. O Average accounting return. Net present value. Discounted return on investment.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:**Question:**
Which of the following decision criteria is the easiest to use and very popular among investors?
- ○ Payback period.
- ○ Internal rate of return.
- ○ Average accounting return.
- ○ Net present value.
- ○ Discounted return on investment.
This multiple-choice question is designed to assess understanding of investment decision criteria commonly used by investors. Each option represents a different method for evaluating potential investments, focusing on aspects like simplicity and popularity in the investment community.
Expert Solution
Step 1
The capital budgeting process uses different methods to analyze the projects. Each method has different criteria on basis of which the investor takes the decision.
Step by step
Solved in 4 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education