Capital Investments Flashcards
0
Q
When reject or accept on cash pay back method
A
Lower the better
1
Q
When reject or accept annual rate of return
A
Higher than managements min roi
2
Q
When reject or accept the NPV method
A
0 or positive accept
3
Q
When reject or accept the profitability index
A
1 or higher
4
Q
When reject or accept internal rate of return
A
Meet min roi or more