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There are four principal decision models for evaluating and selecting investment projects . Net present value (NPV) Profitability index (PI) . Internal rate of return
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 method recognizes the real option aspects of a proposed capital investment? O IRR and PI O None of the methods (NPV, IRR, PI, PB, or discounted PB) recognizes the real dation aspects of a capital O NPV, IRR, PI, and discounted PB investment Read the following statements and categorize whether they characterize the IRR, NPV, PB, or PI decision criteria: Statement IRR NPV PB PI Generates multiple solutions if used to analyze nonconventional projects If its value is greater than or equal to one, then the project should be accepted The present value of the expected stream of future cash flows generated by the project minus its initial net investment
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