Statements regarding capital budgeting decisions

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Reference no: EM131511992

Analyze the following statements regarding capital budgeting decisions and determine which is correct. Select one:

a. The net present value of decision making and capital budgeting is superior to the payback method in that it considers the time value of money.

b. Assuming a 6% interest rate, the factor 0.94340 would be taken from a compound interest (future value) table of factors.

c. The internal rate of return capital budgeting technique does not consider the time value of money.

d. All capital budgeting techniques will produce the same decision in selecting among alternatives.

Reference no: EM131511992

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