Question
To screen out undesirable investments, Blank______ use(s) the cost of capital.
Multiple choice question.
only the net present value method
neither the net present value nor internal rate of return methods
only the internal rate of return method
both the net present value and internal rate of return methods
Multiple choice question.
only the net present value method
neither the net present value nor internal rate of return methods
only the internal rate of return method
both the net present value and internal rate of return methods
Answers
GPT-4o mini
The correct option is:
**both the net present value and internal rate of return methods**
Both the net present value (NPV) and the internal rate of return (IRR) methods take into account the cost of capital when evaluating investments to determine their desirability.
**both the net present value and internal rate of return methods**
Both the net present value (NPV) and the internal rate of return (IRR) methods take into account the cost of capital when evaluating investments to determine their desirability.