Of the six key methods used to evaluate capital projects, which one do you prefer? Why do you prefer this method over others? What is your second choice for an evaluation method? Why?
The six methods:
- The internal rate of return (IRR)
- The modified internal rate of return (MIRR).
- The payback period
- The discounted payback period
- The profitability index (PI)
- The net present value (NPV)