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CTP · Question #694

(Topic 7) Which cost benefit analysis technique uses the methodology to find where the present value of each project's cash inflows equals the present value of each project's outflows?

The correct answer is D. IRR. See the full explanation below for the reasoning.

Question

  • (Topic 7)

Which cost benefit analysis technique uses the methodology to find where the present value of each project’s cash inflows equals the present value of each project’s outflows?

Options

  • AProfitability index
  • BPayback period
  • CNPV
  • DIRR

How the community answered

(49 responses)
  • A
    12% (6)
  • B
    6% (3)
  • C
    4% (2)
  • D
    78% (38)

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