8. Comparison of alternative decision criteria There are four principal decision models for evaluating and selecting investment projects: Net present value (NPV) Profitability index (PI) Internal rate of return (IRR) Payback period (PB) Which criteria assume that the project's net cash flows (NCFs) are reinvested at the project's internal rate of return? IRR IRR and PI NPV and discounted PB PI Read the following statements and categorize whether they characterize the IRR, NPV, PB, or PI decision criteria: Statement IRR NPV PB PI Easy to use, and provides an indication of a project's riskiness and liquidity Provides an easy-to-interpret benchmark value, since a value of one indicates a project that earns the firm's minimum acceptable return Expresses its value as a percentage