General Studies · Capital Budgeting
What is the most significant non-discounted cash flow method used in practice by firms, especially for initial screening of low-risk projects?
- 1Profitability Index (PI)
- 2Payback Period (PP)✓
- 3Net Present Value (NPV)
- 4Internal Rate of Return (IRR)
Correct answer
Payback Period (PP)
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