Popular capital budgeting decision rules


Question: The five most popular capital budgeting decision rules taught in universities are the payback method, the discounted payback method, the net present value (NPV) method, the profitability index, the internal rate of return (IRR), and the modified IRR (MIRR) method. Briefly describe each decision rule to include the relationship among the five.

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Finance Basics: Popular capital budgeting decision rules
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