According to a 2022 survey of corporations by Duke University, which of the following two capital budgeting methods are most used by large firms in the United States?

Question

Multiple select question.

Payback method

Accounting rate of return

Profitability index

Net present value

Internal rate of return

Answer 1

According to the 2022 survey of corporations by Duke University, the two capital budgeting methods most commonly used by large firms in the United States are:

• Net Present Value (NPV)
• Internal Rate of Return (IRR)

These methods are widely favored due to their ability to evaluate the profitability and feasibility of potential investments in a comprehensive manner.