Explain the net present value (NPV) method for determining acapital budgeting project’s desirability. What is the acceptancebenchmark when using NPV?Explain the payback period statistic. What is the acceptance benchmark when using the payback period statistic?Describe the internal rate of return (IRR) as a method fordeciding the desirability of a capital budgeting project. What is theacceptance benchmark when using IRR?Describe the modified internal rate of return (MIRR) as a methodfor deciding the desirability of a capital budgeting project. What areMIRR’s strengths and weaknesses?
