Is the best method of analyzing mutually exclusive


Net present value:

1. is the best method of analyzing mutually exclusive projects.

2. is less useful than the internal rate of return when comparing different sized projects.

3. is the easiest method of evaluation for non-financial managers to use.

4. is less useful than the profitability index when comparing mutually exclusive projects.

5. is very similar in its methodology to the average accounting return.

 

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Finance Basics: Is the best method of analyzing mutually exclusive
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