Question

In: Finance

In capital budgeting, the NPV method is preffered to other alternativessuch as PI or IRR. What...

In capital budgeting, the NPV method is preffered to other alternativessuch as PI or IRR. What is the justification?

A. Financial management seeks to maximize firm's profit margin.

B. Financial management seeks to maximize firm's market value.

c. Financial management seeks to maximize firm's price earning ratio

D. Financial management seeks to maximize firm's ROE

Solutions

Expert Solution

In capital budgeting, the NPV method is preferred to other alternatives because:-

B. Financial management seeks to maximize firm's market value.


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