The owner of a small construction business has asked you to evaluate the purchase of a new front end loader. You have determined that this investment has a large, positive, NPV, but are afraid that your client will not understand the method
A good alternative method in this circumstance might be
A) the payback method.
B) the profitability index.
C) the internal rate of return.
D) the modified internal rate of return.
Answer: A
Business
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