Here are the answers to the questions you provided:
- E) Discounted payback period.
- C) An investment should be accepted if the NPV is positive and rejected if its is negative.
- C) Payback period.
- A) An investment is acceptable if its calculated payback period is less than some prespecified number of years.
- B) Internal rate of return.
- D) An investment is acceptable if its IRR exceeds the required return, else it should be rejected.
- C) Mutually exclusive investment decisions.
- D) Profitability index.
- A) An investment is acceptable if its PI is greater than one.
- C) If the financial manager relies on NPV in making capital budgeting decisions, she acts in the shareholders’ best interests.