Which of the following conclusions about capital budgeting are valid? Cheek all

Question

Which of the following conclusions about capital budgeting are valid? Cheek all that apply. Managers have been slow to adopt the IRR because percentage returns are a harder concept for them to grasp. Because NPV is the best project criterion, only it should be used and the other criteria should be ignored. For most firms, the reinvestment rate assumption in the NPV is more realistic than the assumption in the IRR. The NPV is the best project criterion because it shows how much value the company is creating for its shareholders. The discounted payback period improves on the regular payback period by accounting for the time value of money.

Explanation / Answer

tick 2,3,5 NPV is the best criteria, FACT NPV is more realistic than IRR. PLEASE RATE

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