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

Question

Multiple select question.

Internal rate of return

Net present value

Profitability index

Accounting rate of return

Payback method

Answer 1

According to the 2022 survey by Duke University, the two capital budgeting methods that are most used by small firms in the United States are typically the Payback method and Accounting rate of return. These methods are often favored by smaller companies due to their simplicity and ease of understanding compared to more complex methods like Net Present Value and Internal Rate of Return.